Russian Law Makers Delays Crypto Mining Law

Russian legislators have acknowledged that the proposed law anticipated to legalize industrial crypto mining is scheduled for an additional delay.

Valery Seleznev, the Deputy Chair of the Energy Committee of the State Duma, has “cast doubts” on the law’s “adoption in the fall,” according to the news agency TASS.

Delays are Impacting the Russian Crypto Mining Legislation Drive

For years, politicians have been deliberating proposals to legalize industrial mining. This is the result of the extensive lobbying efforts of miners.

However, miners have advocated for Moscow to legalize the industry in their most concerted effort this year.

Miners are eager to achieve recognition, even if they must begin paying taxes on their earnings.

Miners are optimistic that obtaining official recognition as a government-approved “form of entrepreneurship” will attract additional domestic investment to their industry.

However, Seleznev posited that Moscow continues to be divided despite the contrary reports.

The legislator stated that “more explicit methods” were required to elucidate “the necessity of mining” and “the advancement of technologies associated with the production and circulation of cryptocurrencies.”

Seleznev asserted that the State Duma would not approve the mining measure during the parliamentary session.

He further stated that “it may not be adopted in the fall session either” and provided an explanation:

“I am sure that the Duma will not adopt [the bill] after taking into account comments of a legal and technical nature we received about a month ago. However, [given the nature of the comments], it may also not be adopted in fall either.”

During a meeting, Seleznev addressed the Electrical Power Commission of the Russian Union of Industrialists and Entrepreneurs.

The lawmaker subsequently stated that miners were required to provide “guarantees” regarding power consumption, a response to the apprehensions expressed by energy industry officials.

Nevertheless, the legislator expressed his expectation that “the issue will be resolved” later.

Will Miners Have to Pay for Electric Grid Infrastructure Changes?

The lawmaker also anticipated that miners would contribute to constructing a “new generation” of enhanced power networks.

He proposed that this network would be more appropriate for the requirements of Russian crypto miners. Officials from the Russian power industry announced late last month that crypto producers are interested in bringing 6.9 GW of capacity online.

According to officials, the nation’s cumulative crypto-mining capacity is estimated at 2.7 GW. According to industry leaders, the Russian industrial crypto-mining sector is currently second in scale compared to the United States.