Catenaa, Wednesday, November 27, 2024 – President Vladimir Putin last week called for cryptocurrency mining to be concentrated in Russian regions with excess electricity, emphasizing that such activities should not occur in areas already facing power shortages.
The comments came during a meeting with Alexei Nechayev, leader of the New People Party faction, at the Kremlin on November 19.
Nechayev proposed leveraging energy-rich regions to expand Russia’s crypto mining industry, aiming to position the country as a global leader in the sector. He noted the need to quintuple mining output to achieve this goal, stressing that mining should avoid regions lacking sufficient electricity reserves.
The Kremlin’s press service echoed Putin’s support for the initiative but reiterated the need to limit mining to regions with surplus power.
In contrast, the Russian government recently imposed bans on crypto mining in energy-deficient regions during the fall and winter months.
These restrictions affect areas such as Zabaikalsky Krai, Buryatia, and occupied Ukrainian territories claimed by Moscow.
Expanding the crypto mining industry could generate annual revenues of up to 200 billion rubles (US $2 billion), according to Nechayev.
The industry’s legalization in Russia earlier this month aligns with government ambitions to utilize mining operations to bolster state-run artificial intelligence projects.
However, critics warn that mining bans risk driving the industry underground.
Yuri Stankevich, Deputy Chairman of the State Duma Committee on Energy, argued that miners would persist as long as it remains profitable.
Experts have urged the government to engage in dialogue with miners rather than rely on punitive measures. Despite these challenges, enforcement crackdowns on illegal mining farms have intensified across the country.
