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Crypto Money

Crypto Miners in Russia’s Irkutsk Region Fined Almost $1.7 Million This Year

Authorities in Russia’s energy-rich region of Irkutsk this year fined crypto miners hefty fines for illegally using electricity to generate digital currency.

Crypto

Irkutsk Crypto Miners to Pay a 100 Million Ruble Penalty in 2022

Cryptocurrency mining has become a profitable business for many companies in Russia’s energy-rich regions and an alternative source of income for Russians. Authorities in Irkutsk, a region of Siberia with abundant energy resources, with prices starting at $0.01 per kWh in rural areas, are on the hunt for illegal mining operations.

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This year alone, local utility companies have filed 400 lawsuits against miners who illegally use subsidized electricity for the population or connect their equipment to the grid illegally. Meanwhile, the courts fined nearly 100 million rubles (closer to $1.7 million at the time of writing).

BTC mining

According to a report in January, the Irkutskenergosbyt organization alone tried to recover 63 million rubles (almost $800,000) from illegal miners. During the recent raids, more than 9000 mining equipment was dismantled from the Baykalsk thermal power plant and the village of Ust-Ordynsky, according to a statement this week by the district prosecutor’s office, quoted on the Federal Press portal.

Mining is among the crypto-related activities that still await extensive regulation in Russia. In March, the Russian Ministry of Energy called for its immediate legalization and proposed the introduction of regional energy quotas for miners. Mining at home is a phenomenon that the Russian authorities want to limit. An industry association of energy suppliers has proposed measures to stop mining in basements and garages, while a finance ministry official said this spring that the government made no sense trying to ban it outright.

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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