Russia Takes Action Against Bitcoin Miners Operating in Residential Areas

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According to a senior official from the energy ministry, Russian authorities are now punishing miners that extract cryptocurrencies using cheap electricity for the general public.

Electricity providers have noticed their increased consumption and are attempting to charge them at commercial prices.

According to Pavel Snikkars, deputy minister of energy, electricity distribution firms in Russia have begun to notice improvised mining farms in residential buildings due to increased energy usage and heavier system loads at substations.

A government official stated that “illegal miners” are the target of the authorities’ pursuit. Utility companies can demonstrate in court that these customers are not utilizing the electricity for home purposes, even though crypto mining has not yet been regulated and such activities are not yet expressly forbidden.

Snikkars added that the utilities would initially send an inspector to investigate and issue a fresh invoice based on the cost of electricity used for commercial purposes when rising power consumption raises their suspicions.

Last week, Pavel Snikkars said that Russia anticipates a significant growth in the proportion of cryptocurrency miners in its overall electrical power usage.

According to Oleg Ogienko, director for government relations at Bitriver, one of Russia’s major mining farm operators, Russian crypto mining uses roughly 1.7 GW of electricity, of which 50–60% is used in the industrial sector of the market.

In order to benefit from the nation’s competitive advantages for the business, such as inexpensive energy supplies and cool climate conditions, the Russian government wants to legalize and regulate mining as one of the crypto-related industries.

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