Regulation
Vladimir Putin Says No to Bitcoin Mining!
8h43 ▪ 3 min read ▪ by Eddy S.
Russian President Vladimir Putin recently expressed concern over the unregulated rise of Bitcoin mining in Russia. During a meeting with senior government officials, Putin warned that this increase could lead to widespread power outages in some regions of the country.
Bitcoin Mining: An Energy-Intensive Activity?
Bitcoin mining is an extremely energy-intensive activity. It consumes an average of 16 billion kilowatt hours per year in Russia, which is about 1.5% of the country’s total electricity consumption. This consumption continues to increase due to the relatively low cost of electricity in Russia and easy access to mining equipment.
Despite the restrictive laws on cryptocurrenciesRussia became the second-largest cryptocurrency mining country after the United States in 2023. However, this rapid growth has raised concerns among regional authorities. In particular, in the North Caucasus republic of Dagestan, which has faced lengthy power outages largely due to an aging infrastructure.
Putin stressed that the uncontrolled increase in electricity consumption for Bitcoin mining could lead to electricity shortages in some regions, leaving new businesses, residential areas and social facilities without supply. He also said that this could delay promising investment and infrastructure projects.
Putin’s offensive!
To address this situation, Putin ordered the implementation of tax and tariff regulations to limit miners and called for a tough federal law to address the issue.
Putin’s recent decision to regulate Bitcoin mining comes as Russia has been forced to introduce power cuts in several regions due to a problem at the Rostov nuclear power plant. This situation highlights the energy challenges the country faces and the importance of timely systematic decisions to regulate this activity.
Putin’s position on Bitcoin Mining reflects growing concern about Russia’s energy stability. But also the need to regulate a rapidly expanding sector to avoid major disruptions to the country’s electricity supply.
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Eddy S.
The world is evolving and adapting is the best weapon to survive in this wavy universe. Originally a cryptocurrency community manager, I am interested in everything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, there is nothing better than writing informative and relaxed articles.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Do your own research before making any investment decisions.