The energy woes of the Russian Bitcoin mining hotspot of Irkutsk are intensifying, with the region’s Governor calling for a “year-round ban” on crypto mining.
Irkutsk Governor Igor Kobzev was speaking at a meeting of the Legislative Assembly of the Irkutsk Region, which was aired on the region’s VK channel.
The Governor said he would ask Moscow to extend its wintertime mining ban in the south of the region.
However, not everyone in Kobzev’s government appears to be on board with such a ban. Some fear it could drive mining firms out of the region once and for all.
Russian Bitcoin Mining Hotspot Government Divided on Ban Call
Many industrial players remain in the areas, despite a recent decree ordering them to power down their rigs in the winter months.
A notable historical building in Irkutsk, Russia. (Source: Fanzuga [CC BY-SA 3.0])The ban came into force on January 1. And Kobzev said the policy has already demonstrated results. The Governor said it has already “freed up about 300 MW of energy capacity.”
However, he said, electricity shortages remain acute in the Angara region. He called for an end to mining “in energy-deficient regions” until work was completed on new housing and state construction projects had been completed.
But Kobzev conceded that not everyone in the Irkutsk government agreed on the move.
Before Russia’s Bitcoin mining boom, the area struggled to attract investors. Mining has revitalized the local economy.
And with Moscow set to launch crypto mining taxes later this year, forcing miners out of the area could prove a costly decision.
“We know that the restrictions in the southern part of the region have caused a mixed reaction. We know that there are opponents to further restrictions. However, we are confident that these measures are necessary. They will ensure the sustainable development of the region.”
Irkutsk Governor Igor KobzevKobzev added that he was “confident that we will go further together.” He said: “We will obtain a year-round ban on mining in energy-deficient areas of the Irkutsk region until 2031.”
The River Angara in Russia. (Source: Octagon [CC BY 3.0])North Excempt from Ban
Crypto miners continue to operate in Northern Irkutsk. And Kobzev appeared keen to let them continue doing so.
At the same meeting, he ordered the creation of a “commission to determine to what extent the new federal rules” would “allow for an increase in tax returns from miners’ activities in the north.”
This commission, he added, would present its findings “at the federal level,” with talks about tax rates still ongoing in Moscow.
Perfect Package for Miners
Irkutsk, in Siberia, offers miners a seemingly perfect package of incentives: Real estate prices and rental fees are low, energy costs are similarly low, and winters are famously long.
However, Irkutsk’s fame as a Bitcoin mining destination means that it has also attracted scores of “grey” miners.
Many of these, Siberian power firms claim, use illegal connections to the grid to avoid detection from the authorities.
The regional ban decree runs until 2031, but – at present – will allow miners to turn their rigs on again in spring this year.
Should Irkutsk’s Governor get his way, scores of other regions look ready to vie to become Russia’s newest Bitcoin mining hotspot.
The market share of the most popular Bitcoin mining pools over the past seven days. (Source: Blockchain.com)These include the Komi Republic, which has started work on an ambitious project that will see it build 15 new mining data centers.
And Rosseti, the state-run power grid firm, this month announced a plan to incentivize idle power centers and facilities not operating at full capacity to start working with crypto miners.
The post Governor of Russian Bitcoin Mining Hotspot Calls for Year-round Ban appeared first on Cryptonews.
