Russia could be facing power cuts if the government doesn't get a handle on crypto mining, according to Russian President Vladimir Putin. Crypto is a popular way for Russians living abroad to get around Western sanctions that stop them accessing normal banking services. It’s also been used to make donations to Russian military units. "We need to make the right decisions, in a timely manner, at the federal level," Putin said. "I've already given the green light to regulate digital currency mining in Russia, including how to tax it and set tariffs." If all the free energy capacity is taken up by cryptocurrency mining farms, new businesses and residential districts will face electricity shortages. Investment projects will also be put on hold, according to Putin, as reported by Ria news agency.
His claim came on the same day Russia had to introduce electricity cutoffs in several regions because of a glitch at the Rostov nuclear power plant. Crypto mining is really energy-intensive, which is causing some difficulties in supplying electricity even in countries like Russia and the United States, which are very energy-rich. Russia is the third biggest player in the world when it comes to crypto mining. All crypto assets use between 0.4 percent and 0.9 percent of global electricity each year, which is about 120 to 240 billion kilowatt-hours. That’s more energy than the world’s data centres use combined, according to a report from Canadian energy company Just Energy. Right now, more than two percent of the energy used in the US is going toward crypto mining. Last year, Russian military units in Ukraine together received more than $1.8 million in donations via cryptocurrency, according to a report from CoinDesk. In March, the US sanctioned 13 entities for helping Russia bypass international sanctions through virtual asset services and technology procurement.
