Discussion of the legal regulation of mining in Irkutsk

industry formation

Mining should be brought into the legal sphere as soon as possible. This was stated by Russian Deputy Energy Minister Yevgeny Grabchak, at the country’s first conference of legal miners “Mining Crypto-Irkutsk”, which was held in Irkutsk.

Deputies of the State Duma of the Russian Federation participating in the event agree with him. They hope that this fall, a law will be adopted in the country to regulate the mining and trading of cryptocurrency. Only at the first stage, this promises to bring into the budget up to 50 billion rubles in taxes, as well as to create hundreds of high-tech jobs for representatives of the IT industry.

The central bank “awakened” the miners

The legal vacuum makes it difficult to regulate the mining industry, hampering the creation of transparent rules of the game. This gap must be filled as soon as possible.

– If we somehow want to fit in with this activity – and in the current reality we have no other options – legal regulation must be implemented, and the concept of mining is unified in the regulatory framework, – He said Yevgeny Grabchak.

Earlier, the central bank suggested banning cryptocurrency regulation. The industry was brought out of the state of “drowsiness”. Its representatives managed to convince the government that it could become one of the engines of the economic and financial system of Russia in the future. This confidence was expressed, in particular, a deputy in the State Duma of the Russian Federation from the New People’s Party Oleg Tkachev:

The application of cross-border and decentralization will allow you to feel independent at any time from the entire global financial system. Cryptocurrency and blockchain technologies enable every country to be self-sufficient. So we will continue to develop this topic, especially since we see government support.

According to him, there are now disagreements about regulatory policy in this area. The industry must be liberalized in order to attract qualified employees, especially IT professionals.

A new data center will be opened in Ust-Ilimsk

Today, the country’s first and largest data processing center (DPC) operates in Bratsk with a power consumption of 100 megawatts and more than 220 employees. The second large data center will open this year in Ust-Ilimsk. The planned capacity is 87 megawatts, staff 63 employees. Both projects are being implemented by the largest data center operator in Eurasia, BitRiver.

– An invoice for the digital currency has been sent to the government, – said the director of GR BitRiver Oleg Owenko. – The law should clearly define what cryptocurrency is, mining and the different entities that implement it. Tax issues are also important: what is the benefit to the state from mining activities. In our opinion, taxes should be levied at the time when the cryptocurrency received by mining is converted into fiat money (classic money). We believe that there should be no value-added tax when mining, since cryptocurrency has specific characteristics, and any additional fees here are likely to hurt. At the first stage, according to our calculations, this could give up to 50 billion rubles in tax revenue to the budget only from mining activities, not taking into account the entire turnover of cryptocurrency, because. Mining has always been an integral part of the entire digital economy.

green energy driver

A separate issue is ensuring the reliability of power grids while miners are operating. Cryptocurrency mining equipment is energy intensive and generates heavy loads. Bringing the industry into the legal sphere must ensure the receipt of proportionate payments for technological connection and electricity consumption.

At the conference, Yevgeny Grabchak expressed the opinion that mining activity should be associated with plans for the development of the power system and, in general, with the development of individual industries in the regions. It is they, according to the deputy minister, who should determine the mining sites and quote the free energy capabilities of the miners.

In turn, Deputy Chairman of the State Duma Committee on the Environment Georgy Arapov He stressed the importance of directing taxes from mining to green energy development projects.

– Today, under the sanctions, we have lost a lot in terms of modern environmental projects, and they are trying to isolate us. Mining can become a driver for the development of new environmental projects, and new sources of energy production. We understand that “green energy”, which gives resources to mining, will return these resources for their development. Now it occupies just over a third of the total energy received, but within 10-15 years we will be able to ensure that green energy occupies a dominant position, reducing environmental damage, The deputy said.

Now a trend has been identified for the use of low carbon generation, including in mining activities. About 60% of bitcoin mining capacity already meets green standards. Experts believe that this trend will continue. This is followed by investors. Moreover, sanctions, as confirmed by the conference participants, did not affect this area significantly compared to other sectors of the economy.

On the basis of this conference in April and May, together with the New People Party, the Russian Chamber of Commerce and Industry and BitRiver, we will create a large center, like the “boiling point” in Irkutsk, a legacy where mining is booming. We plan to hold an international conference in the fall. Yes, things are difficult now. Many will come, but they are afraid. However, the entire European Union is ready to work with us, but at the level of people who live there and earn money, not governments. We united this number a long time ago, – Certainly Director of the Russian Association of Crypto Economy, Artificial Intelligence and Blockchain Alexander Braznikov.

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Anatoly NikitinMinister of Housing and Energy Policy of the Irkutsk Region:

The energy system of the Irkutsk region has the ability to overcome the risks arising from the development of the cryptocurrency industry. However, uncontrolled gray mining, which leads to the risk of interruptions in power supplies, negatively affects the stability and quality of power supplies for all consumer groups.

In the autumn-winter period of 2021-2022, new records of peak electric energy consumption have been recorded three times in the power system of the region since 1989: the maximum figure was recorded on February 11, 2022 and amounted to 9,009 megawatts.

Taking into account the concept of legislative regulation of the mechanisms for regulating digital currency trading adopted at the level of the Government of the Russian Federation and the position of the Russian Ministry of Energy on this issue, cryptocurrency mining activities need to be regulated in a way that benefits both small businesses and the state. Legal mining activities should provide the full costs of network generation and maintenance.

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