Bitrabo Editorial
With the introduction of new regulations for cryptocurrency mining in Russia, officials in Dagestan have detected numerous illicit mining operations. The regional prime minister has called for law enforcement to enhance their efforts against these illegal activities, particularly as the area grapples with high electricity usage.
Cracking Down on Hidden Crypto Mining Operations
According to a report by Reuters on Tuesday, Dagestan officials are advocating for intensified action against unauthorized mining facilities. Abdulmuslim Abdulmuslimov, the prime minister of Dagestan, expressed the need for law enforcement to stay vigilant against the clever tactics being adopted by miners.
During a meeting focused on winter preparations for energy and utility services, Abdulmuslimov revealed that several unregistered mining sites have been uncovered underground:
The owners of unauthorized crypto mining setups are devising new strategies to evade the law – such as situating mining operations underground.
Authorities presented footage of an underground chamber in the Sergokalinsky district, showing a narrow entry point that can easily blend into the surroundings, which leads to a staircase down to the cave. Inside, they discovered over 15 mining rigs along with numerous fans to cool the equipment.
Abdulmuslimov noted this is just one of several covert crypto mining setups in the region. He also mentioned that miners have started using “mobile installations,” enabling them to relocate their operations easily.
A New Chapter for Crypto Mining in Russia
Bitrabo reports that cryptocurrency mining was recently legalized in Russia. In August, President Vladimir Putin signed a new law intended to legitimize the industry in the country, aiming to foster innovation and curb illegal mining activities.
This legislation is set to take effect on November 1, 2024, permitting registered entities and individuals to conduct mining activities legally. The law grants mining companies and miners “exclusive rights” to operate within Russia.
Moreover, individuals who stay within the government-set energy consumption limits will be allowed to mine without needing registration. However, the crackdown on unauthorized mining operations has been a persistent issue in Dagestan.
A report from The Insider indicated that police raids on mining facilities in the region have surged since late 2023. Authorities believe Dagestan might have the highest number of detected electricity thefts related to crypto mining in Russia, attributing significant electrical issues to these operations.
In conclusion, Dagestan’s prime minister has urged law enforcement to adopt tougher measures, arguing that illegal mining activities have led to power outages, including a recent incident at a substation that left multiple districts without electricity for over a week.
