Russia May Move Bitcoin Miners to Northern Regions: Report
Russia's Energy Ministry is exploring the possibility of introducing incentives for the tightly controlled Bitcoin mining industry to move it to the north of the country.
The move follows a ban on bitcoin mining introduced in January this year in ten regions (mostly in the south), including Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, as well as the Donetsk, Luhansk, Zaporizhia and Kherson regions.
The ban will remain in place until March 15, 2031, and the government is considering extending the restrictions to new regions.
Russia, with its relatively cold climate and cheap energy resources, has historically been one of the world's largest Bitcoin mining centers. However, since the conflict in Ukraine, the country has faced growing energy shortages, leading to localized blackouts and prompting the government to regulate the industry to reduce the burden.
Russian Deputy Energy Minister Yevgeny Grabchak told state news agency TASS that bitcoin miners could use the “total capacity” of unused power grids in northern Russia that were previously used for oil production.
“The deposits’ resources are depleted, but the energy centres remain and can be used by miners in the long term if it is beneficial for the region’s economy and energy system,” he noted.
The regions being considered for expansion include “the entire north, part of the northwest and some areas of the Volga region.”
The minister did not provide specific plans for next steps, only indicating that the agency is in talks with miners about the possibility of resettlement.
Is the ban on mining in Russia effective?
The initiative to ban mining in the southern regions has so far shown some success in reducing the load on the power grid. The government claims that the ban has saved more than 300 megawatts, enough to power a small town.
However, this does not mean that restrictions on Bitcoin mining have become particularly popular in Russia. Some analysts point out that the bans could lead to missed opportunities for economic growth and investment in less developed regions.
Other Russians noted that the mining ban had been misinterpreted in Western media. Denis Rusinovich, a partner at Cryptocurrency Mining Group, said that many large corporate miners are still allowed to operate in these regions in practice. He told The Mining Pod that the ban only affects small, unregulated miners or individuals.
Source: cryptonews.net
