Russian Cryptocurrency Miners Will be Subject to Increased Electricity Prices Even if They Work from Home

Dec 01, 2021 at 11:45 // News
Lana Smiley
Cryptocurrency miners will pay more

The Russian Energy Ministry confirms that mining cryptocurrencies is not part of daily needs. Therefore, there is no way for miners to benefit from residential electricity rates.

Officials also stress the need to distinguish between electricity consumption for personal needs and consumption for business purposes. Mining cryptocurrencies definitely falls under the latter, even if the miners work from home. Therefore, they should be willing to pay more.

As CoinIdol, a world blockchain news outlet, previously reported, the State Duma is determined to bring crypto miners out of the shadows and let them work within a legal framework. The regulatory requirements are currently being developed.

Is this a good choice?

The framework is expected to be tested in the Irkutsk region, which is very attractive for miners due to low energy prices. The region's governor, Igor Kobzev, has even expressed concern about the drastic increase in consumption. In order to protect citizens from possible power outages, he has suggested creating special platforms for commercial mining. Apparently, he also calls for a price increase.


On the other hand, the higher prices could have the opposite effect. Even without special tariffs, Russia has problems with miners illegally using electricity without paying for it properly. From time to time, the country's law enforcers crack down on cryptocurrency mining facilities that operate underground. One such facility was located on the premises of a traffic police station in Saratov.

While large mining farms might feel comfortable with some framework and separate charging systems, small miners working from home could go deeper underground.

Still, increased electricity prices for cryptocurrency miners do not seem to be uncommon in some countries. Belarus and Kyrgyzstan have already introduced separate tariffs for cryptocurrency mining. Kazakhstan is also considering such an option. However, it is currently unclear what the ultimate impact of such an approach will be.

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