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Russia’s Energy Ministry has announced plans to impose a ban on cryptocurrency mining in certain regions, particularly as law enforcement intensifies crackdowns on unlicensed mining operations in Siberia. Yevgeny Grabchak, the Deputy Minister of Energy, indicated that these state-level bans are being developed and are expected to last until 2030.
State-Level Bans on Crypto Mining
According to reports from the Russian news agency TASS, Grabchak attributed the impending ban to ongoing electricity shortages within specific regions. He did not specify which areas would be impacted, but pointed out that the bans would likely target traditional mining hubs known for their significant energy consumption.
Regions such as the Far East, Southwest Siberia, and the South are currently facing energy deficits, which have prompted government action. Grabchak emphasized that it will not be possible to allocate large amounts of electrical capacity to these areas until at least 2030.
New Legislation and Regional Powers
The announcement came just days prior to the introduction of a new law concerning crypto mining, Russia’s second piece of legislation focused on this area. This law will permit regional governments to implement temporary bans on mining operations. Earlier this year, President Vladimir Putin expressed his support for the crypto mining sector but stressed the necessity for regional authorities to have the ability to shut down miners when energy supplies are critically low.
It is notable, however, that the forthcoming regulations will empower the central government—rather than local governors—to issue local bans on mining.
Local Requests for Total Bans
Recent developments highlight the urgency behind these measures. The Governor of Irkutsk has reportedly appealed to Prime Minister Mikhail Mishustin for a full ban on crypto mining in Irkutsk Oblast, as well as in the Republic of Buryatia and Transbaikalia, indicating a growing concern about local energy resources.
Continued Crackdowns on Illegal Mining
Meanwhile, enforcement actions against illegal mining operations persist in the Irkutsk region. Local authorities have been active in detaining individuals involved in unauthorized mining activities. For instance, a recent report from Kommersant revealed that law enforcement apprehended an individual in the village of Malinovka for conducting illegal cryptocurrency mining by tapping into the power grid unlawfully.
It was noted that the local power provider, the Irkutsk Electric Grid Company, had previously disconnected the residence’s electricity due to unpaid bills. In what was described as a sophisticated attempt to defraud the power supply, the resident had reconnected their property to the grid without proper authorization.
Seizure of Equipment and Criminal Charges
Upon a raid conducted in early September, law enforcement discovered 25 crypto mining rigs along with various related equipment at the site. Authorities estimated that the illicit operation had consumed around $18,520 worth of electricity during its tenure.
As a consequence, a criminal case has been filed against the individual for allegedly inflicting damage through deception and abuse of trust, violating Article 165 of the Russian Criminal Code. This incident reflects broader issues in regions like Irkutsk, which is often referred to as Russia’s Bitcoin mining capital, as industrial miners begin to explore establishing data centers outside of Siberia and the Far East.
Broader Implications for Crypto Mining
The crackdown on illegal mining facilities in Siberia is not isolated to Irkutsk. Reports indicate that similar actions are being taken in Novosibirsk, the largest city in Siberia and a key administrative center in the region. As these measures unfold, the landscape for cryptocurrency mining in Russia is poised for significant changes, impacting how and where mining operations can legally occur.
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