Argentine energy minister cryptocurrency announced that the concessions given to its miners on energy will be abolished. With the change, cryptocurrency miners in the country will have to pay approximately 4 times what they paid before.
Argentina Removes Concessions It Grants To Cryptocurrency Miners
The Argentine government has announced that it is removing the privileges it offers to cryptocurrency miners. According to the new decision number 40/2022 taken by the country’s energy ministry, miners will have to pay approximately 4 times what they have paid so far for electricity.
The new energy tariff for miners in the Ushuaia and Rio Grande regions is set to be $47.50 per MW/hour. Before the change, miners were paying $16.76 per MW/hour for the same amount of energy.
The reasons behind the decision were explained as follows:
“Given the availability of payment and the profits generated by mining operations, it is appropriate for cryptocurrency miners to pay the equivalent fee to the supply cost as it is unfair for them to pay the equivalent fee to a residential user.”
The decision in question is expected to affect the Tierra del Fuego region, where miners are concentrated. The region’s cold climate prevents cryptocurrency miners from investing in cooling systems and incurring energy costs.
However, Cammesa, the energy sales company of Argentina, announced that they are having trouble identifying people who use electrical energy to mine cryptocurrencies.
More and more people are living in the economically struggling country as electricity is cheap. bitcoin started mining.