Kremlin advisors have suggested that home crypto mining should be banned in Russia, or parts of its regions. The stated motive of the proposal is to prevent fires in residential buildings. Amateur miners have been blamed for high loads on the grid causing breakdowns and power outages.
Energy experts want to ban cryptocurrency mining in Russian homes
Energy Committee of the State CouncilThe Energy Committee, an advisory body to the Russian president, has recommended banning the mining of digital currencies in residential areas. Its members believe the measure will reduce the risk of fires, local media reported.
The idea is to completely ban the production of cryptocurrency in apartment complexes and residential areas in the country, or at least in parts of Russia that are suffering from energy shortages. This includes Moscow and the Moscow Oblast, a region adjacent to the Russian capital.
Crypto-related activities are a source of additional income for many ordinary Russians, especially in places with access to cheap electricity, but are not yet regulated. A bill tailored to do so is currently being considered by the State Duma, the lower house of the Russian parliament.
Energy experts have also suggested that the federal government should give regional authorities the power to impose additional taxes on cryptocurrency mining, the daily Izvestia revealed in a press release, citing the minutes of a committee meeting held in mid-December.
Anton Tkachev, a member of the State Parliamentary Committee on Information Policy, Information Technology, and Telecommunications, believes that the push to ban mining in residential and energy-poor areas is a logical move because industrial mining farms already consume significant amounts of energy Tkachev believes that.
He also stressed that energy security is a serious issue, especially for small towns that lack adequate budgets for proper repair and maintenance of energy systems and equipment. As for private homes, he added, there is also the risk of mining equipment causing fires.
The Russian Energy Ministry, which supports legal regulation of crypto mining, noted that residential electricity distribution networks are not designed to handle the overload caused by coin mining in homes, as Russian energy companies point out.
Irkutsk Oblast has become a hotspot for home mining in Russia as residents take advantage of some of the lowest subsidized electricity rates in the country and install crypto farms in their basements and garages. According to media reports, in the first half of 2022 alone, mining hardware was found in the area where 23 fires occurred in the region.
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