Crypto Miners In Russia Are Increasingly Creative, Build Underground Mines To Avoid Law
JAKARTA The Republican Dagestan in southern Russia called for stricter action against electricity-dependent crypto miners. Local officials revealed that the miners caused power outages and sought to circumvent the law by building underground mining installations.
Digital currency mining has increasingly been monitored globally in recent years as the computing power needed to complete complex puzzles requires dedicated hardware that operates around the clock and consume a lot of electrical energy.
The Prime Minister of Dagestan, Abdulmuslim Abdulmuslimov, said that the authorities should focus more on illegal crypto mining after a fire broke out at an electric substation in the capital caused by a surge in electricity consumption by crypto miners.
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"Owners of illegal crypto mining installations found a new method to 'behead' the law of their installing crypto mines underground," said Abdulmuslimov.
The Dagestan government released footage showing investigators examining a crypto mining installation in an emergency underground cave with dozens of fans to cool computers.
The crypto mining law signed by the Russian President, Vladimir Putin, will take effect on November 1, 2024. The Ministry of Finance will maintain a special list of companies involved in crypto mining, while individuals mining digital currencies must provide certain information to Russia's financial monitoring regulators.