Russia Cracks Down on Illegal Crypto Mining to Save Power

Russia is implementing stringent measures to curb illegal cryptocurrency mining activities, aiming to protect the country's power supply and ensure compliance with energy regulations. The government has proposed cutting off electricity to illegal miners during high-demand periods, a move that will be overseen by the Ministry of Energy. This initiative is part of a broader effort to manage the energy consumption of crypto mining operations, which have been a significant drain on Russia's power resources.

The new regulations include the establishment of a national registry for crypto mining machinery. This registry, developed in collaboration between the Ministry of Energy, the Federal Tax Service, and the Ministry of Digital Development, will monitor the number and operation of mining devices across the country. By tracking these machines, authorities aim to better control the stress on the power grid and prevent unauthorized mining activities.

Additionally, the importation of mining equipment will now require labeling and certification. This measure is designed to help the government distinguish between legal and illegal mining operations, preventing individuals from using uncertified devices that consume excessive power. The Deputy Prime Minister, Alexander Novak, has set a deadline for the Ministry of Energy to finalize these rules by the end of the current quarter. Once approved, the regulations will initially be enforced in regions where mining has already been restricted, such as Buryatia and Transbaikalia, due to energy deficits during the heating season.

In regions where mining is not prohibited, small business owners and companies must register with the Federal Tax Service to mine legally. Individuals are also allowed to engage in mining, but their monthly electricity consumption is limited to 6,000 kilowatt-hours. This restriction is intended to discourage large-scale illegal mining operations that pose as personal facilities. The government's goal is to ensure that there is enough power to meet the needs of households and essential services, while also addressing the environmental and economic impacts of illegal mining.

These measures reflect Russia's commitment to regulating the cryptocurrency mining sector. By implementing new technologies and stricter rules, the government aims to quickly trace and curtail illegal mining activities. The move comes as global interest in crypto mining increases, with Russia attracting many miners due to its low-cost energy. However, the government believes that illegal mining is now costing the country too much, both in terms of energy resources and environmental impact. The new regulations are part of a broader effort to create a more stable and sustainable mining industry that benefits both the economy and the environment.