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Amid High Energy Demand From Miners, Russia Mulls Building New Power Plants in Siberia – Mining Bitcoin News

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Amid High Energy Demand From Miners, Russia Mulls Building New Power Plants in Siberia

Growing electricity consumption in the crypto mining sector may require the construction of new power generation facilities in Siberia, the energy minister of Russia has acknowledged. Demand continues to increase in residential areas as well, after regional authorities abandoned a proposal to introduce higher tariffs for Russians minting digital coins at their homes.

Authorities in Russia Think New Energy Infrastructure, Generation Capacities in Crypto Mining Regions

Russian Minister of Energy Nikolay Shulginov has recognized the increased demand for electricity from cryptocurrency miners in some parts of Siberia where the industry has been expanding. Additional generating capacities may be necessary to meet their needs, he indicated, quoted by local media and crypto news outlets.

Shulginov did not reveal specific plans but made it clear that Russian authorities in these regions are considering the further development of the energy networks used by mining companies and the construction of more power plants. The grids in the Republic of Khakassia and Irkutsk Oblast are currently experiencing the greatest loads, Bits.media reported.

“The position of the Ministry of Energy has always been based on the need to create working conditions for mining,” the government official emphasized. He also noted that electricity consumption of the population has risen as well, sometimes causing damage to the distribution networks.

“As for industrial mining, it is also growing, mainly in regions where the tariff is low. In these regions, we are seeing significant consumption growth, which we must take into account,” Shulginov commented in an interview with the Russia-24 TV channel and elaborated:

Most likely, it won’t go without the construction of generation [capacities] in the southeastern part of the unified energy system of Siberia.

Energy-Rich Irkutsk Maintains Low Electricity Rates for Crypto Miners

Crypto mining has been expanding in Russia, a country with abundant low-cost energy resources and cool climate, both as a profitable business activity and as an additional source of income for many ordinary Russians minting in basements and garages. According to a study published in October, bitcoin mining revenue in Russia grew 18 times in four years before markets and sanctions hit it this year.

At-home mining has been blamed for breakdowns and blackouts in places such as Irkutsk, dubbed the mining capital of Russia, which offers some of the lowest electricity rates in the country. A proposal to introduce differentiated tariffs, increasing energy costs for amateur miners in order to limit consumption, was backed by the energy ministry but eventually rejected by local authorities with the exception of the region of Kemerovo.

In early December, Deputy Energy Minister Pavel Snikkars said that the industry may see a two-fold increase in its share of Russia’s total power consumption in 2022. His department and the Bank of Russia supported a bill designed to regulate cryptocurrency mining but lawmakers postponed the adoption of the draft law for 2023.

Tags in this story
consumption, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, Demand, Electricity, Energy, energy minister, energy ministry, generating capacities, grid, Miners, mining, networks, power, power plants, Russia, russian

Do you think the Russian government will take steps to ensure energy supplies for cryptocurrency miners? 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.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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.

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BitPay Announces Partnership With MoonPay – Bitcoin Magazine

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Bitcoin And Artificial Intelligence Frees Your Time - Bitcoin Magazine


BitPay and MoonPay, leading bitcoin and cryptocurrency payments infrastructure providers, have partnered “to provide BitPay users with significantly increased ways to buy cryptocurrency instantly, and at great rates.”

“BitPay’s unique marketplace experience also presents multiple rates for buyers, ensuring they receive the best possible price for their cryptocurrency purchases,” the press release states. “Additional benefits of the integration include fast delivery to any owned wallet address, as well as the ability for buyers to pay with their preferred method, including credit card, debit card, Apple Pay, Google Pay or a variety of local bank transfer methods.”


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Why Real Regulatory Change In Crypto Has Not Happened

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Why Real Regulatory Change In Crypto Has Not Happened



Legislators need to educate themselves on Web3 if they care about protecting consumers, Steven Eisenhauer, chief risk and compliance officer at Ramp, writes.


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South Korea to deploy cryptocurrency tracking system in 2023

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South Korea to deploy cryptocurrency tracking system in 2023


The Ministry of Justice in South Korea announced plans to introduce a crypto-tracking system to counter money laundering initiatives and recover funds linked to criminal activities.

The “Virtual Currency Tracking System” will be used to monitor transaction history, extract information related to transactions and check the source of funds before and after remittance, according to local media outlet khgames.

While the system is slated to be deployed in the first half of 2023, the South Korean ministry shared plans to develop an independent tracking and analysis system in the second half of the year. A rough translation of the ministry’s statement reads:

“In response to the sophistication of crime, we will improve the forensic infrastructure (infrastructure). We will build a criminal justice system that meets international standards (global standards).”

The South Korean police previously established an agreement with five local crypto exchanges to cooperate in criminal investigations and ultimately create a safe trading environment for crypto investors.

Related: South Korean prosecutors request arrest warrant for Bithumb owner: Report

The South Korean Supreme Court ruled that crypto exchange Bithumb must pay damages to investors over a 1.5-hour service outage on Nov. 12, 2017.

The finalized ruling from the supreme court ordered damages ranging from as little as $6 to around $6,400 be paid to the 132 investors involved.

“The burden or the cost of technological failures should be shouldered by the service operator, not [the] service users who pay commission for the service,” the court stated.


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