In Russia, some crypto miners go underground – actually

MOSCOW (Reuters) – Russia’s southern republic of Dagestan has known as for more durable measures towards power-hungry cryptocurrency miners who native officers mentioned have been inflicting electrical energy outages and searching for to evade the legislation by constructing mining installations underground.

Miners of digital cash have come beneath scrutiny the world over in recent times as a result of the computing energy wanted to resolve the advanced puzzles includes specialised {hardware} which operates across the clock and guzzles electrical energy.

Dagestan’s native prime minister, Abdulmuslim Abdulmuslimov, mentioned that the authorities wanted to pay extra consideration to unlawful crypto mining after a substation hearth within the capital was brought on by a spike in consumption because of crypto miners.

“The house owners of unlawful cryptocurrency mining installations are developing with new strategies of ‘circumventing’ the legislation – they set up mining farms underground,” Abdulmuslimov mentioned.

Dagestan’s authorities launched footage displaying investigators inspecting a crypto mining set up in a makeshift underground cavern with dozens of followers to chill the computer systems.

Cryptocurrency mining laws, signed by President Vladimir Putin, will come into impact beneath sure situations from Nov. 1, 2024.

A particular register shall be maintained by the finance ministry for corporations partaking in cryptocurrency mining. People mining digital currencies must present sure data to Russia’s monetary monitoring regulator.