Bitcoin

Igor Kobzev, the Governor of the <a href="https://ultramining.com/news/en/irkutsk-region-busts-1-000-illegal-crypto-miners-in-a-year-fires-a-major-concern/" rel="noopener noreferrer nofollow">Irkutsk</a> Region in <a href="https://ultramining.com/news/en/russia-s-energy-ministry-charges-forward-to-legalize-crypto-mining/" rel="noopener noreferrer nofollow">Russia</a>, is calling for more active regulation of mining activities. Speaking at the Legislative Assembly, he highlighted that despite a 26% increase in legal crypto mining, the region is losing out on significant tax revenue. Kobzev also pointed out the strain on the energy supply system due to mining activities, affecting both social infrastructure and the general populace, according to <a href="https://www.rbc.ru/crypto/news/652fde899a794765886aeb34" rel="noopener noreferrer nofollow">rbc</a>.
In line with this, the <a href="https://ultramining.com/news/en/irkutsk-region-busts-1-000-illegal-crypto-miners-in-a-year-fires-a-major-concern/" rel="noopener noreferrer nofollow">Irkutsk</a> regional government is working closely with federal bodies to develop legal frameworks around crypto mining. The aim is to boost investments and fortify the socio-economic development of the region. This call for regulation coincides with <a href="https://ultramining.com/news/en/russia-s-energy-ministry-charges-forward-to-legalize-crypto-mining/" rel="noopener noreferrer nofollow">Russia</a>’s broader move to legalize Bitcoin mining, offering a formal structure that can potentially bring in more taxes.
The urgency for regulation gains weight as energy consumption in the Irkutsk region has quadrupled due to crypto mining activities. This uptick has led to stress on the existing energy infrastructure, causing disruptions that ripple through to residential and public service sectors. Consequently, the Governor is seeking a balanced approach that accommodates the booming crypto <a href="https://ultramining.com/news/en/texas-residents-challenge-bitcoin-mining-industrys-impact-on-power-grid-and-communities/" rel="noopener noreferrer nofollow">mining industry</a> while safeguarding public interest.
Russia is already taking steps to organize the sector through the newly established Industrial Crypto Mining Association (IMA). The IMA comprises five companies, including <a href="https://ultramining.com/news/rossiya-sravnyalas-s-ssha-po-tempam-rosta-majninga-kriptovalyut/" rel="noopener noreferrer nofollow">BitRiver</a> and Intelion Mine, that provide cryptocurrency mining capacity in <a href="https://ultramining.com/news/en/crypto-miners-shift-gears-ai-is-the-new-gold-rush/" rel="noopener noreferrer nofollow">data centers</a> or supply <a href="https://ultramining.com/news/en/immersion-cooling-transforms-chinas-crypto-mining-landscape/" rel="noopener noreferrer nofollow">mining equipment</a>. This establishment reflects a growing acceptance and institutional interest in mining, aligning with the Governor’s call for a more regulated environment.
In conclusion, as the Irkutsk region grapples with the challenges posed by an expanding crypto <a href="https://ultramining.com/news/en/texas-residents-challenge-bitcoin-mining-industrys-impact-on-power-grid-and-communities/" rel="noopener noreferrer nofollow">mining industry</a>, the need for comprehensive legislation is becoming increasingly evident. Striking a balance between encouraging a burgeoning industry and ensuring the welfare of the community has become a top priority for the regional government.

Irkutsk Governor Calls for Tighter Crypto Mining Regulations Amid Tax Shortfalls and Energy Crisis

Ultramining_Eng

Other articles published on Oct 19, 2023

Gomining (GMT) Price Prediction 2024, 2025, 2030, 2040, and 2050

Hommiestoken: Redefining the Crypto Landscape with Real-World Utility and a November Launch

Uniswap's Rising On-Chain Activity Amid Fee Introduction Reflects Market Dynamics

CTAS Stock (NASDAQ: CTAS) Made Double Top, Will CTAS Retest $500?

Crypto Exchange Bitpanda Secures VASP License in Norway

BlackRock’s Bitcoin ETF Approval May Boost BTC to $42,000: Matrixport Report!

Join our free newsletter for daily crypto updates!