Russian Energy Companies Target Private Crypto Miners: Impact on Bitcoin (BTC) and Ethereum (ETH) Markets

  • Russian energy firms are reportedly preparing to “hunt down” private crypto miners, according to a report by Izvestia.
  • The Russian Government Expert Council is set to send fresh mining-related proposals to the Cabinet, aiming to legalize industrial crypto mining and ban most domestic exchanges.
  • The proposed measures include using electricity meter technology to identify suspected miners and allowing power companies to charge home-based offenders at “higher rates.”

Russian energy companies are set to crack down on private crypto miners in a bid to regulate the industry and reduce strain on the energy grid. This move comes as part of a larger package of crypto laws being proposed by the Russian Government Expert Council.

Russian Energy Firms to ‘Hunt’ Private Crypto Miners

The Russian Government Expert Council is reportedly preparing to send fresh mining-related proposals to the Cabinet on May 16. These proposals aim to regulate the crypto mining industry, specifically targeting private crypto miners. The council plans to use electricity meter technology to identify suspected miners and compare declared readings with actual electricity usage using remote checking solutions. The proposed measures also include allowing power companies to charge home-based offenders at higher rates typically reserved for industrial enterprises.

Energy Companies to Gain More Powers

Dmitry Tortev, of the Federal Antimonopoly Service of Russia, told Izvestia that the move would allow power providers to act without the need to go through the legal system. This would speed up and intensify the fight against illegal crypto mining. Currently, crypto mining has no legal status in Russia, making it neither illegal nor legal. Power firms can only step in if they suspect individuals are stealing power from local grids.

Systems Overloaded, Say Providers

The proposed measures come as the Russian energy system is reportedly “overloaded” in many areas, leading to interruptions in the supply of electricity to consumers. The documents claim that there has been a significant increase in electrical energy consumption due to an increase in mining loads, leading to local deficits in certain regions. These regions, including the south-eastern part of Siberia, the Irkutsk-Cheremkhovo district of the Irkutsk region, the southern part of Buryatia, and certain parts of the Trans-Baikal region, are known crypto mining hotspots.

Conclusion

The proposed measures by the Russian Government Expert Council aim to regulate the crypto mining industry and reduce the strain on the energy grid. While these measures may be met with dismay by private miners, industrial miners are reportedly eager for the legalization of their sector, even if it means paying taxes on their earnings. This move marks a significant step towards the regulation and legitimization of the crypto industry in Russia.

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Gideon Wolf
Gideon Wolfhttps://en.coinotag.com/
GideonWolff is a 27-year-old technical analyst and journalist with extensive experience in the cryptocurrency industry. With a focus on technical analysis and news reporting, GideonWolff provides valuable insights on market trends and potential opportunities for both investors and those interested in the world of cryptocurrency.
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