Russia bans Bitcoin mining in select regions due to power shortages
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Russia implements crypto mining bans in energy-scarce regions. The government plans to solve the problem of power supply caused by high electricity consumption.
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According to a new report by the state news agency TASS, quoted by Deputy Minister of Energy Yevgeny Grabchak, Russia is considering banning Bitcoin and crypto mining in some regions due to the lack of electricity.
“Mining will soon be banned at the state level in some regions,” Grabchak said.
The decision came in response to excessive electricity consumption by crypto miners, which led to power outages in areas such as the Far East and the south of Siberia. The power supply in these areas is limited and they do not have the infrastructure to handle large-scale mining operations.
The government wants to prioritize domestic energy needs and ensure adequate energy supply for essential services. The specific regions where the ban has taken place have not yet been officially announced.
Crypto mining is now a legal activity in Russia following a law signed by President Vladimir Putin in August. However, not everyone is allowed to participate. The law, which takes effect in November, limits large-scale operations to registered Russian entities and sets power limits for individual miners.
Last week, Russia passed a law regulating digital currency exchanges, aiming to regulate crypto mining activities. The law gives the Russian government the power to ban mining operations in certain regions or territories, as well as in mining pools.
As crypto mining continues to grow, energy consumption has become a concern, especially as many regions struggle with energy crises.
Utility companies are watching the situation closely, as cryptomining can lead to fluctuating energy prices and pressure on resources, especially during periods of high demand.
While some in the renewable energy sector see opportunities for crypto miners to tap into excess energy from renewable sources, they also express concerns about the overall sustainability of the industry's energy needs.
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