In a recent report, Russian energy firms are gearing up to intensify efforts against private crypto miners operating from their homes. The move, as outlined by the Russian Government Expert Council, aims to tackle the growing concerns surrounding the significant increase in electrical energy consumption attributed to crypto mining activities, particularly in regions known for their mining hotspots.

The proposals, set to be sent to the Cabinet on May 16, suggest leveraging electricity meter technology to identify suspected miners. By comparing declared readings with actual electricity usage through remote checking solutions, power companies aim to crack down on individuals engaging in unauthorized crypto mining activities. Additionally, the proposed measures include allowing power companies to charge higher rates to home-based offenders, treating them similarly to industrial enterprises.

Dmitry Tortev of the Federal Antimonopoly Service of Russia emphasized the importance of streamlining the process for power providers to take action against illegal crypto mining activities. He highlighted the need for a unified system for fines at the federal level to expedite and intensify the fight against unauthorized crypto mining.

The documents also shed light on the strain placed on the Russian energy system due to increased mining loads, resulting in interruptions in electricity supply to consumers. Regions such as Irkutsk, Buryatia, and Trans-Baikal are experiencing local deficits, mainly attributed to the surge in crypto mining activities. Irkutsk, in particular, has emerged as a mining hub, leading to a complex relationship with the practice in the region.

Amidst these challenges, the Deputy Minister of Energy Pavel Snikkars suggested increasing energy tariffs for miners to encourage them to move away from energy-deficient areas. However, industrial miners are eagerly awaiting legal clarity from Moscow, despite the potential imposition of taxes on their earnings. Legalization would provide the necessary framework for these firms to make further investments in data centers.

As Russia grapples with the implications of crypto mining on its energy infrastructure, the proposed measures signal a concerted effort to regulate the industry and address the strain on the energy grid. While these initiatives aim to curb unauthorized mining activities, the broader debate continues on the legalization and taxation of the crypto mining sector, underscoring the complexities surrounding its integration into the country's regulatory framework.