In Russia, some crypto miners go underground

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.

Reuters
Russia’s southern republic ofDagestanhas called for tougher measures against power-hungry cryptocurrency miners who local officials said were causingelectricity outagesand seeking to evade the law by buildingmining installationsunderground.

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.

(You can now subscribe to our Economic Times WhatsApp channel)

(Catch all the Business News, Breaking News, Budget 2024 Events and Latest News Updates on The Economic Times.)

Subscribe to The Economic Times Prime and read the ET ePaper online.

…moreless

‘;
});
}
if(listing) {
var h3 = “You tried reading ” + listArr.length + ” locked stories in the past ” + threshold + ” days.”, h4 = “Become an ET Prime member and don’t miss out on these exclusive stories.”;
var html =

‘;
$(‘#paidSCWidget’).html(html);
var callback = $(‘#paidSCWidget’).attr(‘data-callback’);
if(callback && window[callback]) {
window[callback]();
}
customDimension.dimension72 += ‘ | Shown SYFT no Trial_With Missed Paywalled Articles Collection’;
} else {
_processNormal()
}
}
});
} else {
_processNormal();
}
} catch (e) {
_processNormal();
}
}, function () {
_processNormal();
});
//console.log(‘storyCollectionLoad’, $);
}

Why ?

Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

Stock analysis. Market Research. Industry Trends on 4000+ Stocks

Clean experience withMinimal Ads

Comment & Engage with ET Prime community

Exclusive invites to Virtual Events with Industry Leaders

A trusted team of Journalists & Analysts who can best filter signal from noise

​Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-​