MOSCOW (Reuters) – The southern Russian republic of Dagestan has called for tougher measures against power-hungry cryptocurrency miners who local officials say are causing power outages and trying to evade the law by building underground mining facilities.
Digital currency miners have come under scrutiny around the world in recent years because the computing power needed to solve the complex puzzles involves specialized hardware that runs around the clock and consumes a lot of electricity.
Dagestan's local prime minister, Abdulmuslim Abdulmuslimov, said authorities should pay more attention to illegal cryptocurrency mining after a fire at a substation in the capital was caused by a surge in consumption due to cryptocurrency miners.
“Owners of illegal cryptocurrency mining facilities are coming up with new methods to 'circumvent' the law – they set up underground mining farms,” Abdulmuslimov said.
The Dagestan government has released images showing investigators inspecting a cryptocurrency mining facility in a makeshift underground cavern with dozens of fans to cool computers.
The cryptocurrency mining legislation, signed by President Vladimir Putin, will come into force under certain conditions from November 1, 2024.
The Ministry of Finance will maintain a special register for companies engaged in cryptocurrency mining. Individuals mining digital currencies will be required to provide certain information to Russia's financial oversight regulator.
