MOSCOW (Reuters) – Russia's southern republic of Dagestan is searching for harder measures in opposition to electricity-hungry cryptocurrency miners, which native authorities say are attempting to evade the regulation by inflicting blackouts and constructing underground mining amenities.

Digital coin miners have come beneath elevated scrutiny all over the world in recent times as a result of the computing energy wanted to resolve complicated puzzles includes specialised {hardware} that runs across the clock and consumes enormous quantities of electrical energy.

Dagestan Prime Minister Abdulmuslimov mentioned authorities have to pay extra consideration to unlawful crypto mining after a hearth at an electrical energy substation within the capital was attributable to a surge in consumption by crypto miners.

“Homeowners of unlawful crypto mining amenities are arising with a brand new technique to 'circumvent' the regulation: they arrange mining amenities underground,” Abdulmuslimov mentioned.

The Dagestan authorities launched footage of investigators inspecting a cryptocurrency mining facility arrange in a makeshift underground cavern outfitted with dozens of followers to chill the computer systems.

The cryptocurrency mining invoice signed by President Vladimir Putin will come into impact on November 1, 2024, topic to sure situations.

The Ministry of Finance will preserve a particular register for corporations engaged in cryptocurrency mining, and people mining digital currencies must present sure info to Russia's monetary surveillance regulator.