President Vladimir Putin warned on Wednesday that unregulated cryptocurrency mining dangers overloading Russia’s electrical grid and inflicting widespread energy outages.
“An uncontrolled increase in electricity consumption for mining cryptocurrencies can lead to power shortages in certain regions,” Putin informed senior authorities officers at a gathering targeted on the economic system.
Russia’s Vitality Ministry estimates that crypto mining consumes on common 16 billion kilowatt-hours per 12 months — or nearly 1.5% of Russia’s complete electrical energy consumption.
“The figure continues to go up,” Putin stated, itemizing the comparatively low-cost price of electrical energy in Russia and entry to gear as a number of the components resulting in a rise in crypto mining.
Regardless of its restrictive legal guidelines on cryptocurrencies, Russia was the world’s second-largest crypto mining nation after the USA in 2023. The earlier leaders, China and Kazakhstan, have restricted crypto mining actions in recent times.
Investigative journalists lately named the North Caucasus republic of Dagestan — which has been gripped by prolonged blackouts largely because of getting older infrastructure — because the “capital” of crypto mining in Russia.
Putin on Wednesday shared the issues of regional authorities that mining farms might depart “new businesses, residential areas and social facilities with supply disruptions, and put on hold promising investment and infrastructure projects.”
The Kremlin chief stated he had ordered tax and tariff rules for miners and known as for a federal regulation to deal with the difficulty, which seems to have taken on renewed significance amid sweeping energy outages in southern Russia on Tuesday.
In 2020, Putin signed a regulation that legalized cryptocurrencies as digital monetary belongings however banned their use from paying for items and companies. Russia established the blockchain-based “Digital Ruble” as a brand new type of authorized tender in 2023.
Final week, Russian lawmakers moved to legalize crypto mining whereas banning the circulation of cryptocurrencies in Russia.
… we’ve a small favor to ask. As you could have heard, The Moscow Instances, an unbiased information supply for over 30 years, has been unjustly branded as a “foreign agent” by the Russian authorities. This blatant try and silence our voice is a direct assault on the integrity of journalism and the values we maintain expensive.
We, the journalists of The Moscow Instances, refuse to be silenced. Our dedication to offering correct and unbiased reporting on Russia stays unshaken. However we want your assist to proceed our vital mission.
Your help, irrespective of how small, makes a world of distinction. For those who can, please help us month-to-month ranging from simply $2. It is fast to set up, and you may be assured that you simply’re making a major affect each month by supporting open, unbiased journalism. Thanks.
Proceed
Not able to help at the moment?
Remind me later.
×
Remind me subsequent month
Thanks! Your reminder is about.