The Russian government is preparing to impose stricter regulations on cryptocurrency mining activities, including tough measures against violations of current laws.
The new regulations allow authorities to remotely disconnect mining farms during peak electricity consumption to relieve the load and prioritize supply to important customers.
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The Russian government plans to increase penalties and control illegal cryptocurrency mining activities.
Cryptocurrency mining is classified as low electricity consumption, susceptible to disconnection during peak hours.
The new regulations include requirements for registration and certification of imported mining equipment, creating a foundation for more effective energy control.
How is the Russian government working to improve the rules for the cryptocurrency mining industry?
The Ministry of Energy of Russia has been tasked with building and perfecting the legal framework for cryptocurrency mining activities, according to Interfax news agency after a cabinet meeting chaired by Deputy Prime Minister Alexander Novak.
The proposed changes focus on increasing accountability for illegal grid connections, electricity theft, and violations of mining bans in regions at risk of power shortages.
In particular, cryptocurrency mining will be classified as low-priority electricity consumers, meaning there is a risk of being limited or disconnected in the event of supply shortages.
“We are happy to see a surplus of electricity in some regions, but when mining farms appear, appropriate management decisions are needed,”
Vladimir Putin, President of Russia, May 2024, at the East Asia Economic Forum
Why does Russia want the ability to remotely disconnect mining farms?
Classifying mining activities as low electricity consumption aims to facilitate limiting consumption during peak hours to ensure electricity supply for more important customers.
According to the Ministry of Energy, this is the legal basis for implementing monitoring and remote control measures to ensure power supply stability.
The recent electricity shortages in many regions have led to temporary or permanent bans on mining activities in areas such as Siberia, the North Caucasus, and even in occupied regions of Ukraine.
What new regulations are proposed to manage imported mining equipment?
The Ministry of Energy, in coordination with the Federal Tax Service and the Ministry of Digital Development of Russia, is building a database to register imported mining equipment to better control electricity consumption and the origin of the equipment.
Deputy Minister of Energy Petr Konyushenko emphasized that this helps accurately identify electricity consumers for mining purposes.
“We need a tool to clearly identify each electricity user serving mining and enhance energy management,”
Petr Konyushenko, Deputy Minister of Energy of Russia, July 2024
What is the current status of registration and management of cryptocurrency mining farms in Russia?
Currently, businesses and individuals are allowed to mine as long as they register with the tax authorities; however, less than 30% of farms have completed registration. Individuals consuming less than 6,000 kWh per month are not required to register.
Law enforcement agencies continuously detect and dismantle illegal mining farms to reduce financial losses for the state and electricity companies.
For example, in June 2024, the grid operator Rosseti coordinated with telecom providers to monitor Internet traffic, thereby tracing illegal mining activities.
How will the new management measures affect the cryptocurrency mining industry in Russia?
The tighter regulations on equipment and electricity consumption create greater pressure on mining individuals and businesses, forcing them to comply with the law or face severe penalties.
This is seen as an important step to balance the development of the cryptocurrency industry and stabilize the national power grid, in line with the Russian government's sustainable development goals.
Frequently Asked Questions
Do the new regulations require mining farms to register?
For large businesses and individuals, registration is mandatory under the new regulations to control electricity consumption and equipment.
When can the Russian government remotely cut off electricity to mining farms?
Mining farms can be remotely disconnected during peak hours or when there is a risk of energy shortages.
How to distinguish between legal and illegal mining in Russia?
Legal mining requires registration with the tax authorities and the equipment must be controlled according to standards, while illegal operations are often unregistered and use electricity unlawfully.
How do the new regulations affect other electricity consumers?
Controlling electricity consumption in the mining industry helps ensure stable power supply for more important and essential social customers.
When will the registration of mining equipment begin to apply?
This regulation is expected to be approved and implemented in Q3 2024 in regions that have applied mining restrictions.
Source: https://tintucbitcoin.com/nga-ngat-ket-noi-mining-gio-cao-diem/
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