The Russian government is set to ban crypto mining operations in certain regions following a recently approved law that will take effect this Friday. Authorities cited the ongoing power outages reported in several zones as the reason for the regional mining crackdown.
Russia To Ban Crypto Mining In Some Regions
On Wednesday, Russia’s state news agency TASS reported that Deputy Minister of Energy Evgeny Grabchak announced that all kinds of mining will soon be banned in specific regions of Russia.
At the RBC Tech Forum, the Minister highlighted that the ban will be at a state level, citing the recently approved law by President Vladimir Putin. Additionally, he suggested that participation in mining pools may also be prohibited.
If we say that the forerunner of digitalization is mining, then mining will soon be banned in some regions at the state level. Any kind.
Grabchak explained that the new measure is due to electricity shortages in certain regions, including the Far East and Southwest Siberia. The minister detailed that the ongoing electrical crisis in these areas makes offering large power capacities nearly impossible until 2030.
A month ago, Abdulmuslim Abdulmuslimov, prime minister of the southern Republic of Dagestan, urged the Russian government for stronger actions against illegal mining centers in the region, asking law enforcement to pay more attention to the evolving methods miners continue to develop to operate.
As reported by Bitcoinist, authorities busted one of several underground mining facilities operating illegally in the region. Law enforcement found over 15 crypto mining machines with dozens of fans running.
Abdulmuslimov alleged that the illegal mining centers had caused several power outages in Dagestan, claiming they were responsible for a fire at an electrical substation.
New Measures To Come Into Effect Soon
Last Friday, TASS reported that President Putin signed a law to regulate digital currency turnover, aiming to expand the government’s control over Bitcoin and crypto mining operations.
Following the new measure, the Russian government will have the right to prohibit crypto mining in specific regions or individual territories. It can also determine the conditions and cases of these restrictions.
According to the report, the government will be able to regulate the activities of companies that provide mining infrastructure, promoted as an obligation previously but will become a right with the new law.
Moreover, the amendments authorized the Federal Tax Service to control the miners’ register, which the Ministry of Digital Development handled. The new measures will take effect on November 1 alongside several amendments adopted earlier this year, including legalizing crypto mining.
In August, Putin signed a law to give the mining sector a legal status within the country, aiming to tackle illegal operations and be at the forefront of the innovative industry. The legislation will allow registered companies and individuals to operate legally.
Additionally, crypto miners and mining companies will have the “exclusive rights” to mine in the country. In contrast, individuals who do not exceed the energy consumption limits set by the government will have the right to mine without registering.
Bitcoin is trading at $72,061 in the weekly chart. Source: BTCUSDT on TradingView
