Russia will dedicate power plants just for crypto miners?

A top Russian politician has thrown out a fascinating idea, and asked what if the country built special power plants just for crypto miners?

Aisen Nikolaev, who heads the State Council Commission on Energy and also leads the Republic of Sakha is all in on this concept.

Off-grid power plants for crypto mining

Speaking to TASS , a state-run news agency, Nikolaev revealed that discussions are underway with the Ministry of Energy about creating these dedicated power stations. The catch is these plants wouldn’t be connected to the public grid.

This means they could cater exclusively to crypto miners, potentially easing some of the pressure on existing power supplies.

Nikolaev is optimistic about this plan, saying he’s confident that innovative solutions will soon emerge to balance the needs of crypto mining with the interests of local residents.

He pointed out that in certain areas of Russia, electricity use for mining has spiraled out of control, even leading to shortages and affecting power quality for homes and businesses.

Crypto mining is okay, but there are rules

Now, here’s where it gets a bit tricky, because Moscow has already imposed some restrictions on crypto mining in regions where electricity is scarce. Last year, they banned mining from November to March until 2031 in several areas.

Some local leaders are even pushing for year-round bans in popular Bitcoin mining spots.

It seems like they’re trying to keep things under control while still recognizing the potential of crypto.

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The electricity is cheap, but this is the problem

But not all miners are playing by the rules. Authorities are battling illegal mining operations that have popped up in places like Dagestan and Siberia.

Just recently, police busted a mining farm disguised as a greenhouse

The owner had registered it as an agricultural facility to get subsidized energy rates but ended up with 69 mining rigs instead of veggies. Now, he’s facing legal consequences for his tactics.

Arsen Gadzhiev, who oversees Dagestan’s power provider Dagenrego shared that this operation caused an estimated 5 million rubles, or about $54,645 in damages.

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