Russia Ramps Up Regulation on Cryptocurrency Mining: A New Policy to Combat Shadow Operations

In a bold move to stabilize its energy grid, Russia is set to intensify its scrutiny on private cryptocurrency mining by leveraging remote monitoring technology. The Expert Council under the Russian government is advocating for a system where private miners’ actual electricity usage is compared against their reported figures. Detected discrepancies will trigger fines, calculated at higher industrial rates, to counteract the strain on local power supplies due to unauthorized mining activities, according to Iz.

From May 16, the government will review a proposal aimed at addressing the energy disruptions, often caused by shadow miners in various regions. The plan involves imposing penalties based on the excessive electricity consumed, calculated at rates usually reserved for industrial enterprises. This shift is expected to deter the unofficial mining operations that significantly burden the residential electricity supply system, as explained by Dmitry Tortev, a member of the Expert Council.

The issue is exacerbated by the cross-subsidization of electricity costs, where businesses compensate for lower residential rates, costing the industry approximately 300 billion rubles annually. The proposed measure not only aims to streamline the detection and penalization of energy abuses by shadow miners but also hopes to alleviate the financial load on legitimate businesses and stabilize regional energy demands.