Delays in Russian Crypto Mining Legislation Continue

Russian lawmakers have acknowledged another setback in the effort to pass a law legalizing industrial crypto mining. Valery Seleznev, the Deputy Chair of the State Duma’s Energy Committee, expressed skepticism about the bill’s passage in the upcoming fall session, as reported by the news agency TASS.

This delay adds to a series of postponements that have hindered the formalization of the crypto mining sector in Russia despite intense lobbying from miners. These miners have increasingly advocated for legalization, which would require them to pay taxes but could also foster greater domestic investment by officially recognizing mining as a legitimate entrepreneurial activity.

Challenges in Gaining Consensus

Seleznev highlighted ongoing disagreements within Moscow that have stalled progress. He pointed out that clearer explanations are needed to justify the mining operations and the development of related technologies.

“More clear approaches are needed to explain the need for mining and the development of technologies related to the production and circulation of cryptocurrencies,” Seleznev noted, emphasizing the complexity of reaching a consensus.

He also remarked that the bill would not be approved in the current or the upcoming parliamentary sessions due to unresolved legal and technical concerns raised recently.

At a meeting of the Russian Union of Industrialists and Entrepreneurs’ Electrical Power Commission, Seleznev discussed the need for miners to provide guarantees concerning their power consumption. This requirement comes in response to energy officials’ concerns about the significant energy demands of mining operations.

Future Prospects and Infrastructure Costs

Seleznev remains hopeful that solutions will be found eventually, suggesting that miners might be expected to contribute to the costs of constructing improved power networks. This new infrastructure would better accommodate the burgeoning needs of the crypto mining industry. In recent discussions, power industry officials indicated that Russian crypto miners are looking to add 6.9 GW of capacity, significantly more than the current 2.7 GW, positioning Russia as a leading player in the global industrial crypto mining market, second only to the USA.

Such developments underscore the critical intersections between energy consumption, technological advancement, and regulatory progress in Russia’s crypto mining industry. As the country grapples with these issues, the global community watches closely, anticipating how these decisions might shape the broader landscape of cryptocurrency mining.