Tougher action against crypto miners in Russia’s Dagestan

Cryptocurrency mining in Russia has caused power outages and a recent fire in Dagestan’s capital.
Crypto.com’s decision to mint 70 billion CRO tokens has sparked controversy, with critics questioning the exchange’s financial stability and transparency.

Authorities in Dagestan are increasing efforts to crack down on illegal cryptocurrency miners. Local officials warn that these miners, known for their high electricity consumption, are causing widespread power outages and even resorting to hiding underground to evade detection.

The computing power required for digital coin mining, which runs 24/7, uses immense amounts of electricity. A recent fire at a power substation in Dagestan’s capital has been linked to the excessive energy consumption of miners. Abdulmuslim Abdulmuslimov, Dagestan’s prime minister, stressed the need for tighter regulations.

In an attempt to avoid legal repercussions, some miners have constructed underground operations. Dagestan’s government shared footage of investigators examining an underground crypto farm filled with fans to cool the mining hardware.

New regulations, signed by president of Russia, Vladimir Putin, will take effect in November 2024. These laws will require both companies and individuals involved in crypto mining to register with authorities and submit relevant information for monitoring.