The Russian government is planning to crack down on private crypto miners and individuals mining cryptoassets at home. The Russian Government Expert Council is set to propose new regulations to the Cabinet that aim to legalize industrial crypto mining while banning most domestic exchanges. These proposals include using electricity meter technology to identify suspected miners and allow power companies to charge offenders at higher rates typically reserved for industrial enterprises.
The move would give power providers more power to act without going through the legal system in cases of suspected illegal crypto mining. Currently, crypto mining has no legal status in Russia, and private mining is not illegal either. The documents suggest that the Russian energy system is overloaded in many areas due to an increase in electrical energy consumption, often attributed to mining loads. The system is facing interruptions in electricity supply, leading to local deficits in certain regions known for crypto mining activities.
In response to the energy system overload, the Deputy Minister of Energy Pavel Snikkars suggested increasing energy tariffs for miners to encourage them to move away from energy-deficient areas. The ministry has also discussed proposals to reduce strain on overloaded networks, such as forcing industrial miners to shut off their rigs for fixed portions of the year. Industrial mining firms in Russia are eager for Moscow to legalize their sector to provide legal clarity before making further investments in data centers.
The industrial mining sector in Russia welcomes measures that create conditions for its development, and the head of the Industrial Mining Association expressed a positive attitude towards inspections by power providers to bring legitimacy to the sector in Russia. The Russian government’s plan to crack down on private crypto miners and individuals mining cryptoassets at home is part of a larger effort to regulate Bitcoin mining, which is now a priority for Moscow. The proposed regulations would legalize industrial mining while banning most domestic exchanges, giving power companies more control over charging rates for offenders.
