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Russian Association of Electricity Suppliers Proposes Measures to Prevent Home Mining – Mining Bitcoin News

The Industrial Organization of Russian Energy Suppliers has come up with ideas on how to combat cryptocurrency mining in homes, basements and garages. The association believes that this phenomenon is the main problem of mining in Russia as the authorities prepare to legalize it.

Suppliers oppose mining with cheap electricity

The Russian Association of Energy Suppliers and Electricity Utilities has prepared proposals to curb amateur crypto mining with subsidized household electricity, which has become a popular source of income for many Russians. A letter listing his recommendations was sent to Valery Seleznev, first deputy chairman of the energy committee in the State Duma, the lower house of parliament.

Members of the organization consider the minting of digital currencies with cheap energy in homes across Russia to be the biggest problem in mining, Forklog reported. They also point out how difficult it is to accurately assess the damage caused by the practice because it is difficult to establish the share of this consumption in the total amount of electricity used by the population in residential areas.

Russia’s importance as a mining hotspot has grown over the past year, especially since China began cracking down on the industry in May 2021. Not only companies, but people too ordinary people have turned to mining to profit from the difference between high crypto prices and low operating costs. costs in their country.

While the Central Bank of Russia recently proposed banning mining, among a range of crypto-related activities, other government institutions, including a number of ministries and regulatory agencies, are in favor of its legalization. Recognizing mining as a business activity would allow Russian authorities to tax it and also increase electricity tariffs for mining entities.

Home miners in energy-rich regions like Irkutsk, where electricity rates start at around $0.01 per kWh, have been blamed for power outages and grid damage. In December, the federal government in Moscow authorized regional authorities to determine local electricity tariffs in residential areas, which is likely to lead to higher bills for consumption above a certain threshold.

The association of energy suppliers has proposed a number of measures to deal with the problem. For example, he wants consumers to indicate the intended use of the electricity they buy, and if there is a deviation from the stated target, these customers are disconnected from the electricity grid.

The organization is also pushing to force internet service providers to share the IP addresses of suspected crypto-miners with power utilities. It calls for introducing legal accountability for violations such as denying inspectors access to electrical installations powering cryptocurrency farms and using electricity for non-domestic purposes.

Keywords in this story

Consumers, Consumption, Crypto, Crypto Farms, Crypto Miners, Crypto Mining, Cryptocurrencies, Cryptocurrency, Electricity, Energy, Energy Suppliers, Households, Irkutsk, Miners, Mining, Power, Electricity Utilities , Prices, Tariffs, Russia, Russian

Do you think Moscow authorities will take action to prevent Russians from mining cryptocurrency at home? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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