Fun

Russia’s Anti-Monopoly Agency Proposes Higher Electricity Rates for Home Crypto Miners

News Feed - 2022-05-07 03:05:39

Russia’s Anti-Monopoly Agency Proposes Higher Electricity Rates for Home Crypto Miners


The anti-monopoly service of Russia has suggested that Russians minting digital currencies at their homes should pay more for the spent electrical energy. The proposal comes after the submission of a bill tailored to regulate cryptocurrency mining to the Russian parliament. Russian Miners Using Household Electricity Should Pay Higher Bills, Anti-Monopoly Body Says


Russia’s Federal Anti-monopoly Service (FAS) has designed a scheme to charge amateur crypto miners increased rates for the electricity they use. The agency insists its approach to solving the problem with rising consumption in residential areas, due in part to the growing popularity of mining, can reduce the load on the electrical networks.


Authorities in the Russian Federation maintain differentiated electricity tariffs depending on the status and location of consumers, the Rossiyskaya Gazeta daily explains in an article. Businesses subsidize household prices through their own tariffs, which can be up to two times higher than the rates for the general population.


Private consumers often try to exploit their low rates to earn money by powering anything from car repair shops to woodworking shops, the Community of Energy Consumers association notes. As a result, grids in residential areas are overloaded as they are not designed to cope with the excessive power usage, which has also spiked due to home mining.


The FAS now wants to introduce a threshold for electricity consumption, above which higher rates will be imposed. Thus, according to the anti-monopoly service, household needs will be separated from commercial ones. The consumption of various household appliances, including those with increased power usage like air conditioning units, will be accounted for.


Each Russian region will be able to set the amount of electricity that will be supplied at preferential rates, taking into account factors such as power usage for heating in the cold months and the length of the heating season, the FAS pointed out. In December, the federal government allowed regional authorities to independently determine the local electricity tariffs.


Power supply networks in the residential areas of many regions with historically low electricity prices, such as Irkutsk Oblast, Krasnoyarsk Krai, and Dagestan, have suffered breakdowns due to the spread of improvised crypto mining farms minting coins in basements and garages.


The introduction of differentiated tariffs is expected to reduce interest in mining and other ways of earning at the expense of subsidized household electricity. The agency hopes the new approach can also lower production costs for businesses calculated in the prices of their goods and services, ultimately suppressing inflation.


The proposal comes as Russian lawmakers are reviewing a new draft law on cryptocurrency mining. The legislation aims to regulate the industry in the country, which is rich in cheap energy resources and favorable climatic conditions. Its competitive advantages can potentially turn Russia into a global mining leader, officials have acknowledged. Tags in this story agency, bitcoin farms, Bitcoin Miners, Bitcoin mining, body, consumption, Crypto, crypto farms, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, Electricity, Home Miners, Miners, mining, power, pricing, rates, Russia, russian, scheme, tariffs


What are your thoughts on the new electricity pricing that will affect crypto miners in Russia? Tell us in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Kazakhstan Amends Registration Rules for Cryptocurrency Miners MINING | 2 days ago Bitcoin"s Hashrate Taps an All-Time High, Next-Gen Machine Deployment Could Push it Much Higher MINING | 3 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleUS Court Fines Bitmex’s Founders $30 Million for Operating Illegal Crypto Platform Next articleMoody’s: Cryptocurrencies Unlikely to Help Russia Evade Sanctions Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItDraft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament


A bill updating Russia’s tax law to incorporate provisions pertaining to cryptocurrencies has been filed with the State Duma, the lower house of parliament. The legislation is tailored to regulate the taxation of sales and profits in the country’s market ... read more.SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Iran to Increase Penalties for Unauthorized Cryptocurrency Mining

News Feed

Report: Bored Ape Yacht Club Discord Attacker May Have Been Involved in Previous NFT Phishing Scams
Report: Bored Ape Yacht Club Discord Attacker May Have Been Involved in Previous NFT Phishing Scams On June 4, 2022, the Bored Ape Yacht Club (BAYC) Discord server was compromised
Singapore Restricts Crypto Ads — Central Bank Says Crypto Trading Not Suitable for the General Public
Singapore Restricts Crypto Ads — Central Bank Says Crypto Trading Not Suitable for the General Public Singapore’s central bank has issued guidelines to discourage cryptocu
Elon Musk Says Holding Bitcoin Is Less Dumb Than Cash, Disputes Peter Schiff’s Claims About Money and BTC
Elon Musk Says Holding Bitcoin Is Less Dumb Than Cash, Disputes Peter Schiff"s Claims About Money and BTC Tesla and Spacex CEO Elon Musk has clarified his positi
Indonesian Religious Organization Issues Decree Forbidding Use of Crypto by Country’s Muslim Population
Indonesian Religious Organization Issues Decree Forbidding Use of Crypto by Country"s Muslim Population Indonesia’s Tarjih Council and the Central Executive Tajdid of Muhamm
Telegram Responds to SEC: Gram Tokens Are Not Securities
Telegram is pushing back against the U.S. Securities and Exchange Commission (SEC). The messaging platform filed a response to the securities regulator Wednesday, writing that the S
Amaka Nwaokocha1 hour agoShibarium executive issues strong warning about exploitation risksShiba Inu’s marketing strategist Lucie has offered instructions to help users reduce the risk of encountering phishing links an
Tom Blackstone1 hour agoImmutable zkEVM begins testnet phase with 12 Web3 games in developmentThe Web3 gaming company announced that its fully Ethereum-compatible network is now available for public testing.152 Total vie
XRP Price About To Make A New All-Time High Run To $5? Here’s What The Chart Says
Este artículo también está disponible en español. The past 24 hours have seen bullish momentum return to XRP, with the cryptocurrency now reclaiming the $2.5 price level.
Bitcoin price falters as macroeconomic and regulatory headwinds mount
Marcel Pechman5 hours agoBitcoin price falters as macroeconomic and regulatory headwinds mountBitcoin price reversed course at the $71,000 level as professional traders" confidence began to waver.7250 Total views231 Tota
Yearn Finance Connect (YFIC) New DeFi Project Decentralized Finance, Staking, Lending & Yield Farming
Yearn Finance Connect (YFIC) New DeFi Project Decentralized Finance, Staking, Lending & Yield FarmingYearn Finance Connectis a decentralized token under the ERC-20 protocol, that al
Bitcoin’s funding rate flattens, but should BTC bulls rejoice and buy the dips?
Marcel Pechman4 hours agoBitcoin’s funding rate flattens, but should BTC bulls rejoice and buy the dips?Bitcoin bulls tend to celebrate when BTC’s funding rate is negative, but is it really a “generational buying o
Onchain Data Shows Rising Bitcoin Whale Index Surpassing 4-Year High
Onchain Data Shows Rising Bitcoin Whale Index Surpassing 4-Year High Onchain analytics from the research and analysis firm Glassnode shows that the number of bit