Dagestan’s local authorities are calling for stricter measures against cryptocurrency miners who are causing electricity outages by building underground mining installations. A recent substation fire in the capital, attributed to crypto miners, has heightened concerns. New legislation on cryptocurrency mining will come into effect from November 1, 2024.Dagestan’s local authorities are calling for stricter measures against cryptocurrency miners who are causing electricity outages by building underground mining installations. A recent substation fire in the capital, attributed to crypto miners, has heightened concerns. New legislation on cryptocurrency mining will come into effect from November 1, 2024. Read More crypto mining
Synopsis
Dagestan’s local authorities are calling for stricter measures against cryptocurrency miners who are causing electricity outages by building underground mining installations. A recent substation fire in the capital, attributed to crypto miners, has heightened concerns. New legislation on cryptocurrency mining will come into effect from November 1, 2024.
Miners of digital coins have come under scrutiny across the world in recent years because the computing power needed to solve the complex puzzles involves specialised hardware which operates around the clock and guzzles electricity.
Dagestan’s local prime minister, Abdulmuslim Abdulmuslimov, said that the authorities needed to pay more attention to illegal crypto mining after a substation fire in the capital was caused by a spike in consumption due to crypto miners.
“The owners of illegalcryptocurrency mininginstallations are coming up with new methods of ‘circumventing’ the law – they install mining farms underground,” Abdulmuslimov said.
Dagestan’s government released footage showing investigators inspecting a crypto mining installation in a makeshift underground cavern with dozens of fans to cool the computers.
Cryptocurrency mining legislation, signed by PresidentVladimir Putin, will come into effect under certain conditions from Nov. 1, 2024.
A special register will be maintained by the finance ministry for companies engaging in cryptocurrency mining. Individuals mining digital currencies will have to provide certain information to Russia’s financial monitoring regulator.
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