Russia to ban data processing centers from using cheap electricity for cryptocurrency mining

PANews reported on July 11 that according to Cryptonews, Russia will prohibit domestic data processing centers from mining cryptocurrencies if subsidized electricity is used. Previously, the government had revised the draft mining bill passed by the State Duma in the first reading in 2022, and officials are currently working with lawmakers to improve the bill before the second reading. According to the bill, data processing centers must be registered in the register managed by the Ministry of Digital Development and Communications, and operators must promise not to mine in the center in order to enjoy preferential electricity prices. The bill makers said the move is aimed at preventing miners from enjoying electricity subsidies, which will only be provided to data centers that are identified as "communication facilities." Russian power companies provide subsidized electricity to residents, industries and commercial enterprises, and in recent months lawmakers have called for unsubsidized electricity prices for mining companies. Joining the register is voluntary, but after joining, it is prohibited to place mining equipment, even if it is not connected to the Internet.