The growing energy consumption in Russia has created problems with crypto mining companies.
Russia is not a crypto-friendly country, however a recent announcement made by Russian officials stated that Russia is considering adopting blockchain technology to improve to its banking infrastructure.
Recent data indicate that a significant increase happens in the energy consumption rate in Russia and Belarus. The entire credit goes directly to crypto mining activities in Russia in addition to Belarus.
The governor of the Irkutsk Oblast, Igor Kobzev has filed a complaint against illegal cryptocurrency mining. The governor said that the consumption of electricity amounted to 4.7 billion kWh by the end of 2021. And 5.6 billion kWh of consumption was all-inclusive in 2020. The report also stated that mining operations using crypto are using low-cost electricity that are available for general and domestic mining needs.
To the complaint filed by Igor Kobzev, the energy minister of Russia, Nikolai Shulginov, said that higher prices may be coming for miners who profit from the tariffs that are an issue for general mining operations.
There are a lot of chances that the government in Russia might take action to restrict the availability of electricity or increase the price of electricity required for mining crypto.
Mining of crypto in Russia and Belarus
In the midst of a tense regulatory environment in Russia, there are many people who are involved in crypto mining. In September of 2021, the authorities of Russia issued a call to crypto miners to sign up with the authorities so that fair tax rates can be assessed.
The crypto mining industry is completely legal in Belarus since March of this year. The officials of Belarus have already imposed heavy electric consumption charges on mining activities.