Russia Attacks Bitcoin Mining Operations Again: More Restrictions Coming

Three more regions in Russia have applied to join others in limiting bitcoin mining activities due to the high energy consumption of these operations.

Three more Russian regions have applied to join others in limiting bitcoin mining activities due to the high energy consumption of these operations.

According to the Ministry of Finance, the regions of Karelia (northern part), Penza Region, and Khakassia (a number of districts) have submitted requests to limit bitcoin mining.

“These three regions have encountered issues with electricity in the past year,” officials stated.

The ministry explained that these regions are among those hit by winter storms, leading to widespread power outages. Moreover, they have seen an increase in the number of illegal bitcoin mining operations, which has affected the aged infrastructure and caused further issues.

For example, in December, authorities estimated that the power consumption from certain households in Penza had increased by 70%, causing frequent outages. This hints at the installation of illegal mining machines in some of the households, with officials now enhancing their grid and line monitoring schemes to combat this situation.

The ministry did not specify if these regions were applying for a full ban or, like other regions, would only restrict industry activities during the heating season from November 15 to March 15.

These are the latest regions to seek to reduce the impact of bitcoin mining, a popular industry due to the climatic advantages of these areas. In December, Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, the Donetsk and Lugansk People’s Republics, Zaporizhia, and Kherson regions enacted similar bans.

However, some critics believe these bans will push miners underground, making it more difficult for officials to control the activity and its energy footprint.

Despite the discomfort for miners, the measures have begun yielding positive results in regions like Siberia. In February, the Ministry of Energy stated that the region’s load decreased by more than 300 MW, avoiding the need to apply restrictions that would harm the general population.