Russian authorities are cracking down on illegal crypto mining operations, especially in the southern Republic of Dagestan.
Hidden in Plain Sight
The Dagestan government is calling for stricter enforcement against illegal crypto mining farms. The region’s prime minister, Abdulmuslim Abdulmuslimov, says miners are constantly coming up with new ways to hide their operations.
Recently, authorities discovered several underground mining farms, including one in the Sergokalinsky district. This makeshift cavern was cleverly disguised with a narrow, easily concealed entrance. Inside, they found over 15 mining machines with fans keeping them cool.
Miners are also using “mobile installations” to move their farms around easily.
A New Era for Mining in Russia
While Russia has recently legalized crypto mining, the new law won’t take effect until November 2024. This law aims to regulate the industry and combat illegal operations.
Under the new rules, registered companies and individuals will be able to mine legally. Individuals who stay within energy consumption limits can mine without registering.
The Cost of Illegal Mining
Dagestan has been struggling with illegal mining for a while. Police raids on mining centers have become more common. Authorities believe that illegal mining is responsible for a lot of electricity theft and outages.
The recent fire at a substation, which left several districts without power for over a week, is being blamed on illegal mining operations.
The prime minister has ordered law enforcement to get tough on illegal mining, as it’s causing serious problems for the region.
