The Russian government is making moves to crack down on crypto mining in data processing centers that use subsidized power. A draft law passed its first reading in the State Duma in 2022 and is now being refined ahead of a second reading.
The proposed bill would require data processing centers to register with the Ministry of Digital Development and Communications and pledge not to engage in crypto mining. Only centers that comply with this requirement would be eligible to receive electricity at preferential rates. The aim of the legislation is to prevent miners from taking advantage of benefits when paying for power, limiting these benefits to recognized “communication facilities” only.
While Russian electricity companies currently offer subsidized rates to residential and commercial users, lawmakers have called for special unsubsidized rates for crypto mining companies. Membership in the registry would be voluntary, but participants would be prohibited from housing any crypto mining equipment, even if it is not connected to the internet.
Industry experts in Russia have mixed reactions to the proposed legislation. Some see it as a positive step towards solidifying the country’s technological sovereignty and regulating its digital infrastructure. Others argue that the government should have consulted with the private sector before drafting the bill, as it could have negative consequences for both the industrial crypto mining industry and traditional data center operators.
Despite concerns, some operators believe that major industrial miners will not be significantly impacted by the new regulations. These miners are seen as self-sufficient and sustainable, operating dual-use facilities that can support both mining and conventional IT resources. Companies like Intelion have already begun adapting to the changing landscape by dividing their facilities to accommodate both crypto mining and AI computing.
Overall, the proposed legislation reflects a broader trend towards regulating the crypto mining industry in Russia. With a focus on Bitcoin mining among industrial players and Ethereum mining among home-based miners, the country is taking steps to ensure that power subsidies are not misused in the crypto sector. The post Russia to Block Data Processing Centers from Mining Crypto with Cheap Power appeared first on Cryptonews.