Important points
Russia will enforce a ban on cryptocurrency mining in energy-starved regions. The government aims to address power shortages caused by increased electricity consumption.
Share this article
Russia is considering banning Bitcoin and cryptocurrency mining in certain regions due to power shortages, according to a new report from the state-run TASS news agency, citing Deputy Energy Minister Evgeny Grabchak.
“Mining will soon be banned at the state level in some areas,” Grabchak said.
The decision was made in response to excessive power consumption by cryptocurrency miners, which caused power outages in regions such as the Far East and southern Siberia. The energy resources available in these regions are limited and the infrastructure for large-scale mining operations is lacking.
The government wants to prioritize domestic energy needs and ensure sufficient electricity supply for essential services. The specific regions affected by the potential ban have not yet been officially announced.
Cryptocurrency mining has become a legal activity in Russia following a law signed by President Vladimir Putin in August. However, not everyone can participate. The law, which takes effect in November, limits large-scale operations to registered Russian companies and sets energy limits for individual miners.
Last week, Russia enacted a law regulating digital currency transactions, with the aim of regulating cryptocurrency mining activities. This law gives the Russian government the power to ban mining activities in certain areas and territories and mining pools.
As crypto mining gains increasing attention, its energy consumption is a matter of concern, especially as many regions face an energy crisis.
Utilities are monitoring the situation closely, as crypto mining can cause fluctuations in energy prices and strain on resources, especially during peak demand periods.
While some in the renewable energy sector see an opportunity for crypto miners to tap into surplus energy from renewable sources, they have expressed concerns about the sustainability of the industry’s overall energy needs.
Share this article
