- Oct 25, 2021
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Unauthorized Use of Power Could Land Miners Behind Bars
The issue of regulating cryptocurrency mining is looming in Russia and lawmakers have been actively discussing the topic. Andrey Lugovoy, member of the lower house of parliament, the State Duma, has threatened miners with jail if they plug their hardware into the electrical grid without official permission.
If mining is to become legal, the deputy noted, miners should turn to the respective utility before powering up their devices. And if they are denied access but nevertheless connect to the distribution network, they will be in violation of both the Administrative and the Criminal code of the Russian Federation, he explained.
Speaking to the Russian online news portal Lenta.ru, he has now added that regulating mining makes sense. Besides imposing differentiated electricity rates for mining companies, the deputy believes their profits should be taxed after deducting the cost of the consumed energy and other expenses such as labor. Lugovoy accused miners of using cheap, subsidized electricity without paying taxes.
Cryptocurrency Mining Deemed of ‘No Significance’
Bitcoin miners should not expect support from the government as their activity has “no social significance.” That’s according to a statement by the head of the parliamentary Financial Market Committee, Anatoly Aksakov, who also commented on the matter. The high-ranking lawmaker is a
Aksakov announced that the Duma will host the first meeting of a
Amid an ongoing crackdown on bitcoin mining in China, energy-rich Russia has become a major destination for mining enterprises, having received the bulk of Chinese mining machines during the miner exodus this year, according to a recent
Do you think Russia will regulate cryptocurrency mining in the near future? Share your expectations in the comments section below.