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Chechen Authorities Crack Down on Crypto Mining, Labels Miners as “Terrorists”

1 January 2025
in News, Regulation
Reading Time: 3 mins read
106 3
Home News

Starting January 1, 2025, cryptocurrency mining will be deemed illegal in Chechnya, with violators facing severe punishment, according to Adam Delimkhanov, a lawmaker in the Republic’s legislative chambers.

Speaking to local media outlet Tsargrad TV, Delimkhanov stated that crypto miners in the Chechen Republic will be treated as terrorists, following orders from the Chechen Head of State Ramzan Kadyrov.

Delimkhanov emphasized that the move is aimed at protecting society, arguing that cryptocurrency mining poses significant risks to public welfare.

“We will equate them with terrorists, as their actions harm the entire society,”

he declared. He cited the high electricity demands of mining operations, which can destabilize power supplies and disrupt the daily lives of residents.

Authorities have warned that any mining-related electricity shortages in villages, districts, or cities will be met with swift action, including arrests and imprisonment of miners.The crackdown on crypto mining in Chechnya is part of a broader initiative in Russia to address energy shortages caused by the industry. Last October, Russian Deputy Energy Minister Evgeny Grabchak announced that Bitcoin mining would be banned in several regions, including Dagestan, Donetsk, Lugansk, and parts of the Irkutsk Region, Buryatia, and Zabaikalsky.

The restrictions, effective during peak hours, aim to alleviate electricity deficits that have strained local power grids. Lawmakers have expressed concerns about the inability to meet large power demands until at least 2030. The regional ban, which takes effect in November, will remain in place until March 15, 2031, highlighting Russia’s aggressive stance on curbing the impact of crypto mining on its energy infrastructure.

This move comes after Maxim Oreshkin, deputy head of Russia’s presidential administration, previously warned about the long-term consequences of unchecked crypto mining. Speaking to state news agency TASS, Oreshkin cautioned that Russia could face an energy shortage within the next five to ten years due to the rapid growth of the industry, particularly in southern Siberia, where mining activities flourished due to low electricity costs.

While Russia had yet to experience nationwide energy shortages, Oreshkin highlighted growing pressure on certain regions and called for a reassessment of the country’s energy expansion plans to ensure competitive electricity costs.

 

If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.

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