Russian energy firms are reportedly gearing up to crack down on private crypto miners and individuals mining cryptoassets at home. The Russian Government Expert Council is said to be preparing new mining-related proposals to be sent to the Cabinet as part of a package of crypto laws. This move is part of an effort to legalize industrial crypto mining and ban most domestic exchanges. The proposals include using electricity meter technology to identify suspected miners and allowing power companies to charge home-based offenders at higher rates typically reserved for industrial enterprises.
Dmitry Tortev of the Federal Antimonopoly Service of Russia stated that granting power providers more powers to act against illegal crypto mining without going through the legal process would help speed up and intensify the fight against such activities. Currently, crypto mining is neither illegal nor legal in Russia and private mining is also not illegal. However, power companies can only intervene if they suspect individuals of stealing power from local grids. The documents highlight that the Russian energy system is overloaded in many areas, leading to interruptions in the supply of electricity to consumers, particularly in regions known for being crypto mining hotspots.
Regions like Irkutsk have become hubs for mining, legal and illegal, due to factors like low power rates and cold winters. The Deputy Minister of Energy Pavel Snikkars suggested that energy tariffs for miners should increase to encourage them to move away from energy-deficient areas. The Ministry of Energy has previously proposed measures to reduce strain on overloaded networks, such as forcing industrial miners to shut off their rigs for fixed portions of the year. While these proposals have been met with dismay by many miners, industrial miners are eager for Moscow to legalize their sector to provide clarity for further investments in data centers.
The Russian government’s crypto working group chairman has stated that Bitcoin mining regulation is now a priority for Moscow. The proposals to crack down on illegal crypto mining also aim to address the strain on the energy system caused by mining activities. By identifying suspected miners using electricity meter technology and granting power providers more powers to act against offenders, the government hopes to curb illegal mining activities and encourage miners to operate in areas with sufficient energy supply. The ministry has previously floated proposals aimed at reducing the strain on overloaded networks, although these have been met with mixed reactions from miners in the country.
While the Russian government is preparing to crack down on illegal crypto mining, industrial miners are pushing for the legalization of their sector to provide clarity for further investments in data centers. Many industrial miners are willing to invite inspections from power providers to bring legitimacy to the sector in Russia. The focus on regulating crypto mining comes as the activity remains popular in the country, with both legal and illegal mining operations taking place in various regions known for their favorable conditions for mining. The proposals to address the strain on the energy system caused by mining activities aim to strike a balance between regulating the industry and supporting its development in Russia.
