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Policy & Regulation

Russian Trade Ministry’s head believes the crypto mining market should be “whitewashed”

29 May 2022 : 10:47
2 min read
  • Crypto mining accounts for over 2% of the total electricity consumed in Russia.
  • The industry is currently in the "gray zone" and is not taxed or regulated.
  • Vasily Shpak believes that the market needs to be "whitewashed," regulated, understandable, and transparent.

Vasily Shpak, the Deputy Head of the Ministry of Industry and Trade of the Russian Federation, recently revealed that crypto mining accounts for over 2% of the total electricity consumed in Russia.

Whitewashing the crypto mining market

As per the local reports, Shpak said that digital currency mining takes more than 2% of the total energy consumption, more than agriculture. Notably, crypto mining in the nation is currently in the “gray zone” and is not taxed or regulated. Shpak believes that this results in risks for the investors, and therefore, the market needs to be “whitewashed,” regulated, understandable, and transparent.

While speaking at the United Russia discussion event focused on Blockchain technologies development and crypto market regulation, the Deputy Minister stated:

“Do you know how much mining accounts for in the overall map of electricity generation in our country? And I’ll tell you: more than 2%. This is more than the cost of electricity for agriculture. We cannot but recognize mining in this sense as an industrial activity or industry.”

Crypto regulation in Russia

In terms of mining capacity for bitcoin, Russia ranks third after the United States and Kazakhstan. After the publication of a report by the Central Bank proposing to outlaw the mining operations, the discussion on the necessity to legalize crypto mining in the Russian Federation started. The clouds of confusion and unclarity surround the country due to contradictory beliefs of the central bank and government in the nation. 

However, Mikhail Vladimirovich Mishustin, the prime minister of Russia, said that the government agreed with the Central Bank’s stance that cryptocurrencies cannot be used as a form of payment on Russian Federation territory, but that the crypto mining development could be considered. On the other hand, the Minister of Industry and Trade of the Russian Federation, Denis Manturov, said Russia would eventually accept crypto for payments.


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Anisha Pandey

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A writer, an artist, an engineer, and a girl with a colorful mind, Anisha believes in achieving results smartly and diligently. She is a previous journalist at Cryptonary.

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