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Tim Alper
Author
Tim Alper
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Why Trust Cryptonews
One of Russia’s most senior politicians has floated the idea of creating dedicated power stations that could serve an exclusive clientele comprising only crypto miners.
The comments came from Aisen Nikolaev, the head of the State Council Commission on Energy, and the head of the Republic of Sakha (also known as Yakutia).
Russia: Crypto Miners Could Use ‘Dedicated’ Power Stations
The Council’s energy team advises the offices of the President on energy policy-related matters. Nikolaev told the Russian state-run news agency TASS:
“The State Council Commission on Energy is constantly in dialogue with the Ministry of Energy on the matter of [crypto mining]. If any region can launch a separate power plant specifically for crypto mining without access to public networks, then we could look at implementing this kind of solution.”
Nikolaev added that he was “confident that in the near future,” innovators would launch solutions “that will allow” Moscow to “protect the interests of the population while also developing [crypto mining].”
The politician noted that “in some” Russian “regions,” the use of electricity for mining was now becoming “uncontrolled.”
This, he added, was leading to “shortages of capacity,” and has “worsened the quality of electricity supply” to households and companies.
Moscow’s Ban
Nikolaev claimed that power shortages are a problem “especially in regions that do not have a surplus of electricity.” He added:
“I believe the recent decision to limit mining in energy-deficient regions is absolutely correct. It was done in the interests of the people. If we do not stop the uncontrolled load on the networks, there will be very negative consequences.”
Last year, Moscow banned crypto mining in several regions in the winter months until March 15, 2031.
In most of these regions, the bans will stay in place from November to March every year until 2031.
However, some regional chiefs have called for Moscow to approve year-round bans in certain Bitcoin mining hotspots.
Illegal Mining Problems
Meanwhile, the energy authorities’ long struggle against illegal crypto mining continues in the North Caucuses and Siberia.
On February 15, Vesti reported that police in Dagestan raided a crypto mining “farm” that was “disguised to look like a greenhouse.”
Arsen Gadzhiev, the acting head of the Dagestan power provider Dagenrego, said that power engineers found a mining farm equipped with 69 crypto mining rigs in the village of Tashkapur, Levashinsky District.
The owner reportedly tried to “cheat” Dagenrego by registering their connection to the grid as an agricultural facility. This allowed the owner to access “low, subsidized energy tariffs.”
“However, instead of growing vegetables, he decided to engage in a completely different kind of business activity. Now he will have to answer to the law for the damage he has caused.”
Arsen Gadzhiev, Acting head of the Dagestan power provider Dagenrego
Dagestan is one of the regions where mining is currently banned in the winter months. But in recent years, it has become a hotbed of illegal crypto mining activity.
Gadzhiev said that “according to preliminary data,” the damage from the “greenhouse” crypto “farm” was “estimated at 5 million rubles ($54,645).”
Russian Crypto Miners Face Probes in Novosibirsk
Earlier this month, Gorsite reported that prosecutors in Novosibirsk said they were investigating five cases of “illegal mining” in the region.
One of the cases involved “damages to the local energy company” worth about 2 million rubles ($21,858).
Elsewhere in the country, criminals appear to be using hype around Russia’s crypto mining sector as a front for illegal activities.
The TV channel Ekstrennie Vizov reported that police in Krasnoyarsk raided a firm registered as a crypto mining club after allegedly discovering it was a front for an illegal online casino.
The firm’s offices were filled with bogus marketing material for crypto mining projects, officers said.
But the “club,” which had been in operation since 2021, instead invited clients to use special computers to play online gambling games.
Police said they seized cash and computer hardware at the scene, as well as “forged documents.”
Officers also said they made several arrests and will hand the case over to Krasnoyarsk prosecutors.
