Putin Warns of Blackouts From Uncontrolled Crypto Mining – The Moscow Times

President Vladimir Putin warnedon Wednesday that unregulated cryptocurrency mining risks overloading Russias electrical grid and causing widespread power outages.

An uncontrolled increase in electricity consumption for mining cryptocurrencies can lead to power shortages in certain regions, Putin told senior government officials at a meeting focusedon the economy.

Russias Energy Ministry estimates that crypto mining consumes on average 16 billion kilowatt-hours per year or almost 1.5% of Russias total electricity consumption.

The figure continues to go up, Putin said, listing the relatively cheap cost of electricity in Russia and access to equipment as some of the factors leading to an increase in crypto mining.

Despite its restrictive laws on cryptocurrencies, Russia was the worlds second-largest crypto mining country after the United States in 2023. The previous leaders, China and Kazakhstan, have restricted crypto mining activities in recent years.

Investigative journalists recently named the North Caucasus republic of Dagestan which has been gripped by lengthy blackouts largely due to aging infrastructure as the capital of crypto mining in Russia.

Putin on Wednesday shared the concerns of regional authorities that mining farms could leave new businesses, residential areas and social facilities with supply disruptions, and put on hold promising investment and infrastructure projects.

The Kremlin leader said he had ordered tax and tariff regulations for miners and called for a federal law to address the issue, which appears to have taken on renewed importance amid sweeping power outages in southern Russia on Tuesday.

In 2020, Putin signed a law that legalized cryptocurrencies as digital financial assets but banned their use from paying for goods and services. Russia established the blockchain-based Digital Ruble as a new form of legal tender in 2023.

Last week, Russian lawmakers moved to legalize crypto mining while banning the circulation of cryptocurrencies in Russia.

we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Not ready to support today? Remind me later.

Thank you! Your reminder is set.

See the original post here:

Putin Warns of Blackouts From Uncontrolled Crypto Mining - The Moscow Times