With the arrival of the new year came a ban on cryptocurrency mining in Russia.
The government levied the measure in 10 regions, including Dagestan, North Ossetia, and Chechnya, CoinDesk reported. The duration of the prohibition is six years, with expiration set for March 15, 2031, though the length and areas affected can be altered by a commission.
Altcoin Buzz noted that large miners are known to operate in those places and that the embargo "could shake up the local crypto scene." Companies are looking to relocate within the country or to other countries, and the rule could clear a path to increased regulation of the industry around the world.
Other areas in Russia — Irkutsk, Buryatia, and Zabaikalsky — are under seasonal bans from November through March, according to Prism Blocks.
The move was made to save power in the country, which is experiencing an energy crisis.
Cryptocurrency mining only just became legal in Russia in November.
"The ban also takes into account inter-regional subsidies on electricity that make it cheaper to use power in some regions," CoinDesk reported.
Mining requires vast amounts of electricity, much of which is powered by dirty fuels, and scarce water resources, contributing to ever-worsening pollution and environmental degradation.
In the United States, the crypto industry accounts for an estimated 2.3% of energy consumption, though that figure could be higher, E&E News reported. It is stressing the grid and contributing to environmental injustice in places such as Memphis, Tennessee, and allegedly causing health problems via noise pollution in Granbury, Texas.
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While cryptocurrency mining may be at the root of rolling blackouts in Tehran, and illegal miners have stolen electricity in Malaysia, some companies — including VivoPower, Fedrok, and others — are working to remake the industry's image.
Ethereum reduced its energy demand by 99.95% when it switched from proof-of-work mining to proof-of-stake in 2022, and federal officials are trying to rein in the secretive sector.
Beyond that, crypto advocates say the industry has already been naturally gravitating more toward renewable energy off the grid as a smart financial investment to sustain operations, and that crypto can be an effective way to incentivize investment and innovation in renewables.
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