Russian energy firms are gearing up to take action against private crypto miners in an attempt to crack down on people mining cryptoassets at home. The Russian Government Expert Council is reportedly preparing to send new mining-related proposals to the Cabinet, which will involve leveraging electricity meter technology to identify suspected miners. Data analysts will compare declared readings with actual electricity usage using remote checking solutions. The aim is to fine “illegal” miners, with power companies charging home-based offenders at higher rates typically reserved for industrial enterprises.
The move is expected to grant energy providers more powers, allowing them to act without needing to go through the legal system. This unified system for fines developed at the federal level will expedite and intensify the fight against illegal crypto mining, according to Dmitry Tortev of the Federal Antimonopoly Service of Russia. With the Russian energy system overloaded in many areas, there have been interruptions in the supply of electricity to consumers. The increased electrical energy consumption, often due to mining loads, has resulted in local deficits in various regions.
The Russian 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 goal is to reduce the strain on overloaded networks and ensure a stable electricity supply for all consumers in the region. Additionally, the Ministry of Energy has proposed measures such as forcing industrial miners to shut off their rigs for fixed periods of the year to ease the pressure on the system. While these proposals have faced backlash from miners, industrial mining firms are eager for Moscow to legalize their sector to provide clarity and legitimacy to their operations.
Crypto mining remains popular in Russia, where private mining is neither illegal nor legal. Power firms can intervene if they suspect individuals of stealing power from local grids. This crackdown on private crypto miners comes as part of a broader effort by lawmakers to legalize industrial crypto mining and restrict most domestic exchanges. Mining hotspots like Irkutsk have seen significant growth in energy consumption due to mining activities, leading to local deficits in some regions. The move to fine suspected illegal miners at higher rates aims to deter home-based offenders and encourage industrial mining development in the country.
As the Russian government aims to regulate Bitcoin mining, the industrial mining sector is eagerly awaiting legal clarity to make further investments in data centers. The Industrial Mining Association supports measures to create conducive conditions for the development of industrial mining in the country. They are open to inspections from power providers to legitimize the sector and pave the way for its growth. With the complexity of the relationship between mining and energy consumption in Russia, the government’s crackdown on private miners signals a shift towards regulating the crypto mining industry and formalizing its operations.
