In a significant move to safeguard its energy resources, Russian authorities have implemented a total ban on cryptocurrency mining in Dagestan and the North Caucasus Federal District, effective January 1, 2025. This decision is primarily aimed at protecting regional power grids and curbing rampant electricity theft associated with illegal mining activities. The source reports that this measure reflects growing concerns over the sustainability of energy consumption in the region.
Illegal Cryptocurrency Mining in Dagestan
Despite the ban, illegal cryptocurrency mining operations remain a pressing issue for regulators and energy companies in the region. Dagestan has emerged as a hotspot for these activities, accounting for a staggering 47% of all detected illegal mining farms in the North Caucasus.
Statistics on Electricity Theft
The extent of the problem is highlighted by the alarming statistics released since the start of 2025, which indicate that there have been 73 recorded cases of electricity theft linked to illegal mining. These incidents have resulted in substantial financial losses, totaling approximately 857 million rubles. This raises concerns about the sustainability of the region's power supply and the effectiveness of enforcement measures.
Canton town officials have recently proposed a temporary moratorium on data centers and cryptocurrency mining to address community concerns, contrasting with the total ban on mining implemented in Dagestan. For more details, see read more.
