Ban on Crypto Mining in Residential Areas Proposed in Russia – Mining Bitcoin News

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Kremlin advisers have suggested that home crypto mining should be banned in Russia or some of its regions. The stated motive of the proposal is to prevent fires in residential buildings. Hobby miners have been blamed for the high loads on the network causing outages and blackouts.

Energy experts want to ban cryptocurrency mining in Russian homes

The State Council’s energy committee, an advisory body to the Russian president, has recommended banning the minting of digital currencies in residential areas. Its members believe the measure will reduce the risk of fires, local media reported.

The idea is to completely ban the production of cryptocurrencies in buildings and homes across the country, or at least in areas of Russia with energy deficits. Among them are Moscow and Moscow Oblast, the region adjacent to the Russian capital.

Crypto-related activity, which is a source of additional income for many ordinary Russians, especially in places with access to cheap electricity, is not yet regulated. A draft law designed for this purpose is currently being studied in the State Duma, the lower house of the Russian parliament.

Energy experts have also suggested that the federal government grant regional authorities the power to impose additional taxes on cryptocurrency mining, daily Izvestia revealed in a report, citing minutes of a meeting. of the committee held in mid-December.

Anton Tkachev, a member of the State Duma Committee on Information Policy, Information Technology and Communications, believes that the desire to ban mining in residential areas and regions with a shortage of energy is a logical decision, as industrial mining operations already consume critical amounts of energy.

He also pointed out that energy security is an acute problem, especially for small towns with insufficient budgets to fund the proper repair and maintenance of energy systems and facilities. With regard to private dwellings, there is also a risk of mining equipment causing fires, the lawmaker added.

The Russian Ministry of Energy, which supports legislative regulation of crypto mining, noted that distribution networks in residential areas are not designed to handle overloads from coin minting in households, such as Russian energy companies have pointed this out.

Irkutsk Oblast has become Russia’s hotspot for home mining, as residents take advantage of some of the country’s lowest electricity rates, subsidized for the population, and set up crypto farms in basements and garages. According to media reports, mining equipment was found at the scene of 23 fires in the region in the first half of 2022 alone.

Tags in this story amateur miners, ban, outages, consumption, Crypto, crypto farms, crypto mining, Cryptocurrencies, Cryptocurrency, Electricity, fires, network, home mining, Charging, mining, mining facilities, proposal , Regulations, Russia, Russian

Do you think Russian authorities will ban cryptocurrency mining in residential areas? Share your expectations 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.

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