On September 24, Reuters reported that officials in Russia’s southern republic of Dagestan are demanding stricter actions against cryptocurrency miners. Local authorities claim that these miners are causing power outages and attempting to bypass regulations by constructing underground mining facilities.
In recent years, digital coin miners have faced increased scrutiny globally due to the immense computing power required to solve complex puzzles. This process relies on specialized hardware that runs continuously and consumes large amounts of electricity.
Dagestan’s local prime minister, Abdulmuslim Abdulmuslimov, In Russia stated that authorities must focus more on illegal crypto mining following a substation fire in the capital, which was triggered by a surge in electricity consumption caused by cryptocurrency miners.
“Illegal Crypto Miners Installing Underground Farms to Evade Law”
The Dagestan government published footage of investigators examining a cryptocurrency mining operation located in a makeshift underground cavern, In Russia equipped with numerous fans to cool the computers.
Legislation on cryptocurrency mining, signed by President Vladimir Putin, will take effect under specific conditions starting November 1, 2024.
The finance ministry will keep a special register for companies involved in cryptocurrency mining. Individuals who mine digital currencies will be required to submit specific information to Russia’s financial monitoring regulator.