Dagestan, a republic in Russia, is stepping up efforts to tackle illegal cryptocurrency mining due to its impact on the power grid and public safety. Underground mining has recently caused infrastructure damage, including a substation fire. Officials are calling for tougher measures to address these issues as miners flout regulations.
Dagestan Cracks Down on Illegal Cryptocurrency Mining
Authorities in Dagestan have called for tougher measures against cryptocurrency miners for contributing to power outages and trying to evade regulations, Reuters reported on Tuesday. Local officials say illegal mining facilities, often built underground, have put significant strain on the power grid, leading to incidents like the recent transformer fire in the capital. Dagestan is a republic in southern Russia, located in the North Caucasus region, known for its ethnic diversity and home to several indigenous groups.
According to local Prime Minister Abdulmuslim Abdulmuslimov, more attention needs to be paid to the issue of illegal cryptocurrency mining. He explained that miners are constantly finding ways to bypass legal controls, especially by hiding their operations underground. Abdulmuslimov said:
Owners of illegal cryptocurrency mining facilities are coming up with new ways to âget around the lawâ â they are installing mining farms underground.
The government shared footage showing investigators examining one such installation, which included multiple fans to cool the hardware.
Russia's upcoming cryptocurrency mining law, signed by President Vladimir Putin, will come into effect on November 1, 2024. The law requires cryptocurrency mining companies to register with the finance ministry and individuals to report their mining activities to the country's financial watchdog.
What do you think about the Russian republic of Dagestanâs efforts to crack down on illegal cryptocurrency mining and its consequences for the power grid? Let us know in the comments below.
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