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Russian Energy Firms Target Crypto Miners
Russian energy firms are taking steps to tackle private crypto miners operating at home. The Russian Government Expert Council is set to propose new measures to regulate mining activities and enforce laws related to cryptoassets.
Proposed Measures
- The council plans to use electricity meter technology to identify suspected miners.
- Data analysts will compare declared electricity readings with actual usage using remote checking solutions.
- Power companies may fine “illegal” miners and charge them at higher rates typically reserved for industrial enterprises.
Empowering Energy Companies
Dmitry Tortev from the Federal Antimonopoly Service of Russia highlighted that these measures would grant power providers more authority to penalize offenders without going through the legal system. This unified system for fines at the federal level aims to streamline the process of combating illegal crypto mining.
Challenges and Impact
The surge in crypto mining activities has strained the Russian energy system, causing interruptions in electricity supply in various regions. Some areas have experienced deficits due to increased energy consumption from mining operations.
Energy tariffs for miners are proposed to increase to incentivize them to relocate from energy-deficient regions. The government is also considering regulations to manage the strain on overloaded networks, such as periodic shutdowns for industrial miners.
Industry Response
Despite challenges, industrial mining associations are supportive of measures that promote the development of the sector. Legal clarity and government support are sought to encourage investments in data centers and ensure compliance with taxation laws.
Sergei Bezdelov, head of the Industrial Mining Association, expressed willingness to cooperate with power providers for inspections to legitimize the sector in Russia.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
