Russian energy firms are gearing up to target private individuals who are mining cryptocurrency at home, according to a recent report. The Russian Government Expert Council is said to be preparing to present new mining-related proposals to the Cabinet, which will be bundled into a set of crypto laws. These laws also include plans to legalize industrial crypto mining and restrict most domestic exchanges.
One of the proposed measures involves using electricity meter technology to identify suspected miners. By comparing declared electricity readings with actual usage through remote checking solutions, data analysts will be able to pinpoint potential crypto miners. The document also outlines a plan for power companies to penalize “illegal” miners by charging them at higher rates usually designated for industrial enterprises.
Dmitry Tortev, from the Federal Antimonopoly Service of Russia, highlighted that these measures would enable electricity suppliers to take action without having to go through the legal system. He emphasized the need for a unified system for fines at the federal level to expedite and intensify efforts against illegal crypto mining. Currently, power companies must provide proof of violations in court, which consumes time and resources.
The documents express concerns about the strain on the Russian energy system caused by the surge in mining activity. Certain regions are experiencing interruptions in electricity supply due to increased mining loads, leading to local deficits in specific areas. Known crypto mining hotspots like Irkutsk have been particularly affected, resulting in a complicated relationship between the region and mining activities.
Authorities are considering raising energy tariffs for miners to incentivize them to move away from energy-deficient regions. The Ministry of Energy has proposed various solutions to alleviate the pressure on overloaded networks, including mandatory shutdowns of rigs for certain periods. Despite resistance from miners, many industrial mining companies are eager for Moscow to legalize their operations promptly.
As the profitability of Bitcoin mining diminishes over time, major mining companies are diversifying their investments into artificial intelligence (AI) technology. By expanding beyond traditional mining activities, these companies are adapting to survive in a changing landscape. The shift towards AI integration signals a strategic move to sustain operations amid challenges in the cryptocurrency mining industry.
The impending crackdown on private crypto miners in Russia reflects the government’s efforts to regulate and control the rapidly growing sector. By implementing stricter measures and legalizing industrial mining, Russian authorities aim to address the challenges posed by unauthorized mining activities. The industry’s evolution towards AI integration underscores the need for innovation and adaptation to navigate the complexities of cryptocurrency mining in the digital age.