Russia Proposes Ending Electricity Subsidies for Crypto Mining

The Russian government is advancing legislation to eliminate electricity subsidies for cryptocurrency miners by reclassifying mining as an industrial activity. This would subject miners to significantly higher energy costs, particularly in regions like Siberia, where low electricity rates have made mining highly profitable.

Officials argue the changes are necessary to address concerns over energy consumption and to ensure fair resource distribution across the national grid. This proposal is part of broader efforts to regulate the rapidly growing crypto mining sector, which has benefited from Russia's cold climate and affordable energy.

Critics warn that higher costs could push miners to relocate to other countries, weakening Russia's position as a major global mining hub. Additionally, there are fears that the policy could encourage unregulated underground mining, complicating enforcement and oversight.