Harsh Stance on Cryptocurrency Mining in Chechnya
Adam Delimkhanov, a lawmaker in the Russian State Duma, has warned that cryptocurrency miners in the Chechen Republic will be equated with terrorists starting in January 2025. This measure follows the decision to ban cryptocurrency mining in several Russian regions due to its high energy consumption and adverse impact on electricity stability.
According to Russian news outlet Tsargrad TV, Delimkhanov stated that as of January 1, 2025, cryptocurrency mining will be officially outlawed in Chechnya, and anyone caught mining will face severe penalties.
"We will equate them to terrorists because their actions harm the entire society," Delimkhanov declared, quoting Chechen leader Ramzan Kadyrov.
Impact of Cryptocurrency Mining on Electricity Stability
Delimkhanov emphasized that cryptocurrency mining could lead to significant issues with electricity stability, jeopardizing the daily lives of residents. Mining activities demand a substantial amount of energy to power mining systems, potentially disrupting electricity flows.
He warned that if mining activities cause power outages in regions, villages, or cities, Russian authorities will respond swiftly and prosecute those responsible.
Ban Extends to Other Regions
As previously reported, Russian Deputy Energy Minister Evgeny Grabchak announced that Bitcoin and other cryptocurrency mining would be prohibited in several key regions due to energy shortages. The ban will target both individual miners and mining companies operating in regions such as Dagestan, Chechnya, Donetsk, and Luhansk People's Republics.
During peak demand, the ban will also extend to areas in Irkutsk Oblast, Buryatia, and Zabaykalsky Krai. The energy infrastructure in these regions is not expected to handle the high demands of mining activities until at least 2030.
New Law Signed by President Putin Strengthens Regulations
The mining ban is part of broader regulatory measures under the cryptocurrency circulation law signed by Russian President Vladimir Putin. The law gives lawmakers the authority to ban cryptocurrency mining in specific regions. Additionally, it prohibits advertising for companies providing crypto services and introduces further restrictions to limit the spread of cryptocurrency infrastructure.
Summary
The Russian government has taken a hardline stance against cryptocurrency miners, with activities in Chechnya to be treated as terrorism starting in 2025. These strict regulations aim to protect energy systems' stability and prevent disruptions to residents' daily lives. This move is part of a broader effort to tighten control over the cryptocurrency industry in Russia.
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