The Russian Energy Suppliers Industry Organization has come up with ideas on how to combat cryptocurrency mining in homes, basements and garages. The association sees the phenomenon as a major problem for Russian mining as authorities prepare to legalize it.

Suppliers oppose mining with cheap power

Russian energy suppliers and the Association of Electric Utilities have prepared proposals to curb amateur cryptocurrency mining, which has become a popular source of income for many Russians, by subsidizing household electricity. A letter shelving their proposal has been sent to Valery Seleznev, first deputy chairman of the State Duma Committee on Energy in the lower house of parliament.

According to Forklog, the organization's members believe that minting digital currencies with cheap energy across Russia is the biggest problem with mining. They also stressed how difficult it is to accurately assess the damage caused by this practice, as it is difficult to determine the share of such consumption in the electricity used by the population in residential areas.

Russia's importance as a mining hotspot has increased over the past year, especially since China started cracking down on the industry in May 2021. Not only companies but also the general public are turning to mining to profit from the difference between high cryptocurrency prices and low operating costs for their country's expenses.

Despite the recent proposal by the Central Bank of Russia to ban mining, other government agencies, including several ministries and regulators, are in favor of legalizing it in a range of cryptocurrency-related activities. Treating mining as an entrepreneurial activity would allow Russian authorities to tax it and raise Electroneum for mining entities.

Household miners in energy-rich regions such as Irkutsk are blamed for power outages and grid damage, where electricity rates start at about $0.01 per kilowatt hour. Last December, the federal government in Moscow allowed local authorities to determine the local Electroneum in residential areas, which could lead to an increase in consumer bills above a certain threshold.

The Energy Suppliers Association has proposed a number of measures to address this issue. For example, it wants consumers to indicate the intended use of the electricity they purchase and, in the event of deviation from the stated purpose, those customers will be disconnected from the grid.

The group also insists that internet providers share the IP addresses of suspected cryptocurrency miners with electricity companies. It has demanded legal liability for violations such as denying inspectors access to electrical installations powering cryptocurrency farms and the use of electricity for non-domestic purposes.

Do you think the authorities in Moscow will take steps to prevent Russians from mining cryptocurrencies in the country? Share your thoughts on the topic in the comments section below.

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