Energy Firms in Russia Cracking Down on Crypto Miners at Home
Reports indicate that Russian energy companies are gearing up to target and clamp down on individuals who mine cryptocurrencies at home. The Russian Government Expert Council is set to present new proposals regarding mining to the Cabinet, with the aim of legalizing industrial crypto mining and restricting most domestic exchanges.
- The council is expected to submit written proposals to the Cabinet on May 16.
- The documents suggest using electricity meter technology to identify suspected miners.
- Data analysts will compare declared readings with actual electricity usage using remote checking solutions.
Sharper Focus on Monitoring
The proposed measures will equip power companies with the capability to detect and penalize illegal miners at residential properties. In the event of violations, these companies are permitted to charge home-based offenders at higher electricity rates typically reserved for industrial enterprises.
- The empowered energy firms will be able to take action without going through the legal system, expediting the process.
- The move is part of efforts to intensify the crackdown on illicit crypto mining activities in the country.
Russian Energy Companies to Attain Enhanced Authority
Dmitry Tortev, from the Federal Antimonopoly Service of Russia, highlighted that this development would eliminate the need for electricity suppliers to engage in legal battles to curtail crypto mining-related violations, streamlining the process. At present, there is no clear legal framework for cryptocurrency mining in Russia, with private mining existing in a gray area.
Strain on Energy Systems
The surge in crypto mining activities has strained the Russian energy grid, causing disruptions in power supply in various regions. Some areas have experienced shortages due to the increased demand for electricity driven by mining operations, leading to local deficits and interruptions in the supply chain.
- Hotspots such as Irkutsk have witnessed a significant influx of miners attracted by affordable energy rates and favorable weather conditions.
- Authorities are considering hiking energy tariffs for miners to incentivize them to operate in regions with surplus power capacity.
Proposed Solutions and Industry Responses
The Ministry of Energy has suggested implementing measures to mitigate the strain on energy networks, including mandating downtime for industrial miners to alleviate pressure during peak demand periods. Despite resistance from some miners, major industry players advocate for regulatory clarity to promote the legitimacy of mining activities in Russia.
- Industrial Mining Association head Sergei Bezdelov expressed support for creating conducive conditions for the sector’s growth.
- The industry is willing to cooperate with power providers to achieve regulatory compliance and improve the industry’s standing in the country.
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