Electricity Tariffs In Russia Will Rise, Crypto Miners Start Panic

Bitcoin mining company in Russia protested against government policy. (Photo; Doc. Bitcoin Addict)

JAKARTA - The mining industry or crypto mining in Russia must face a new threat from the government. This is because the Russian Ministry of Energy plans to increase electricity rates for crypto miners by up to five times what is currently in effect.

This move is strongly opposed by the Association of Industrial Mining (APM), Russia's largest crypto mining association. According to a Comnews report, the Ministry of Energy wants to charge crypto miners of the same rate as commercial or industrial consumers, which is much higher than the rates imposed on household consumers. The reason is that crypto mining burdens the national electricity grid and disrupts electricity supply to other important facilities.

Even so, APM argues that this plan is unfair and violates anti-monopoly laws. APM claims that crypto mining is a legitimate form of entrepreneurship and should be treated the same as household consumers. APM is also concerned about the negative impact of this plan on the growth of the crypto industry in Russia.

APM said that Russia is currently a global leader in the realm of crypto mining, especially Bitcoin. Furthermore, the mining association showed that Russia's industrial crypto mining market grew by 50% in 2023 and took second place in the global Bitcoin mining market after the United States. APM added that crypto mining allows Russia to make international payments without a hitch and supports imported inflows.

The crypto mining association warns that if the ministry's plans are accepted, Russia's crypto mining industry will lose its competitive advantage. APM says raising fares for miners two to five times will make industrial mining unfavorable. As a result, many miners will turn to illegal or semi-illegal operations that are more difficult to monitor and taxed by the government.

They urged the government to legalize the crypto mining sector and provide legal certainty for its perpetrators. The group also asked the government to cooperate with electricity providers to find mutually beneficial solutions for all parties. APM hopes that the government will protect any leadership that Russia has built in the realm of crypto mining.