Kremlin advisers have suggested that domestic crypto mining should be banned in Russia or some of its regions. The stated purpose of the proposal is to prevent fires in residential buildings. Hobbyist miners have been blamed for high loads on the network causing breakdowns and blackouts.
Energy experts want to ban cryptocurrency mining in Russian homes
The Energy Committee of the council of state, 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 fire risks, local media reported.
The idea is to completely ban cryptocurrency production in apartment blocks and houses in the country, or at least in parts of Russia experiencing power deficits. Among them are Moscow and the Moscow Oblast, the region adjacent to the Russian capital.
Cryptocurrency-related activity, which is a source of additional income for many ordinary Russians, especially in places with access to cheap electricity, is still unregulated. A bill designed to do that is currently under review in the State Duma, the lower house of Russia’s parliament.
Energy experts also suggested that the federal government should give regional authorities powers to impose additional taxes on cryptocurrency mining, Izvestia newspaper revealed in a report, citing minutes of a committee meeting held in mid-December.
Anton Tkachev, a member of the State Duma Committee on Information Policy, Information Technology and Communications, believes that the push to ban mining in residential areas and energy-deficient regions is a logical move, as industrial mining farms already consume critical amounts of energy.
He also emphasized that energy security is a serious problem, especially for small towns with insufficient budgets to finance proper repair and maintenance of energy systems and facilities. As for private homes, there is also a risk that mining equipment could cause fires, the legislator 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 surges due to coin minting in homes, as noted by Russian energy companies.
Irkutsk Oblast has become Russia’s hotspot for domestic mining, as residents take advantage of some of the lowest electricity rates in the country, subsidized for the population, and set up crypto farms in basements and garages. According to media reports, mining equipment was found at the sites of 23 fires in the region during the first half of 2022 alone.
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