Russia cracks down on cryptocurrency miners in residential areas – Mining Bitcoin News

[ad_1]

Russian authorities are now prosecuting miners who mine cryptocurrency using subsidized electricity for the population, according to a senior Energy Ministry official. Electric utilities detect their increased consumption and try to charge them at commercial rates.

Amateur Crypto Miners in Russia Under Pressure Despite Lack of Home Mining Regulations

Electricity distribution companies in Russia have started to identify improvised mining farms in residential buildings due to the increased volume of power consumption and higher loads on the network in substations, a Deputy Energy Minister Pavel Snikkars revealed to the Russian press.

The government official told Izvestia daily that the authorities were prosecuting illegal miners. Although crypto mining has not yet been regulated and such activities are not explicitly prohibited at this time, utilities can prove in court that these consumers are not using electricity for their domestic needs. .

Lawyers interviewed by the newspaper said that in at least 10 cases so far, providers have been able to compel home-based minors to cover the difference between preferential rates for the general population and the higher rates companies are required to. to pay.

When increased energy consumption triggers their suspicions, utilities initially send an inspector to verify and issue a new bill based on the price of electricity used for commercial purposes, Snikkars explained. Eventually, they might try to prove their claims in court.

Irkutskenergosbyt, the electricity distributor for the energy-rich region of Irkutsk dubbed the mining capital of Russia, was among the first to deal with the problem in 2021. According to a report from August this year, crypto miners from Siberia Oblast, where tariffs start at just $0.01 per kWh in rural districts, have already paid 100 million rubles in fines (almost $1.7 million at the time).

Home Crypto Mining Blamed For Electricity Supply Issues In Some Regions

Pavel Snikkars unveiled last week that Russia expects a huge increase in the share of cryptocurrency miners in its total electricity consumption. He also pointed out that home mining is a big problem in some areas where the infrastructure is not able to handle the loads and where power companies have taken steps to ensure reliable supply for others. users.

Russian cryptocurrency mining needs about 1.7 GW of electricity, of which 50-60% is used in the industrial segment of the market, according to Oleg Ogienko, director of government relations at Bitriver, one of the largest operators of mining farms from Russia.

Mining is one of the crypto-related activities that the Russian government wants to legalize and regulate in order to take advantage of the country’s competitive advantages for the industry, such as cheap energy resources and cool climatic conditions.

In November, a group of lawmakers tabled a bill in the lower house of parliament to regulate the minting of digital currencies like bitcoin through amendments to the country’s existing law on digital financial assets. The legislation has been backed by the Bank of Russia and is expected to pass by the end of the year.

Tags in this story ban, bill, trade, consumer, crackdown, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, Electricity, Energy, fines, Irkutsk, Law, Miners, mining, Prices, tariffs, Regulations, residential, Russia, Russian, tariffs

Do you think crypto mining at home will remain an additional source of income for ordinary Russians in the future? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: Being a writer is who I am, rather than what I do. Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is provided for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More popular newsIn case you missed it

[ad_2]