The Governor of the Russian Bitcoin mining capital of Irkutsk has called for a “year-round prohibition” on crypto mining, as the energy problems are intensifying.
Igor Kobzev, the Governor of Irkutsk, addressed the Legislative Assembly of the Irkutsk Region during a meeting that was broadcast on the VK channel of the region.
The Governor stated that he would request that Moscow extend the wintertime mining prohibition in the southern region.
Nevertheless, it appears that not all members of Kobzev’s administration are in agreement with this prohibition. There is concern that it could permanently displace mining companies from the region.
Despite the recent issuance of a decree mandating the shutdown of industrial facilities during the winter months, numerous industrial entities continue to operate in the regions.
January 1 marked the implementation of the prohibition. Kobzev also stated that the policy has already yielded results. According to the Governor, approximately 300 megawatts of energy capacity have been released.
Nevertheless, he stated that the Angara region continues to experience severe electricity shortages. He declared that mining in “energy-deficient regions” should cease until the completion of new housing and state construction projects.
However, Kobzev acknowledged that not all members of the Irkutsk government were in agreement with the decision.
The region faced significant challenges in attracting investors prior to the Bitcoin mining surge in Russia. Mining has stimulated the local economy.
The decision to evict miners from the region could be costly, as Moscow is preparing to implement cryptocurrency mining taxes later this year.
“We are aware that the restrictions in the southern region have elicited a divided response. We are aware that there are those who are opposed to additional restrictions. Nevertheless, we are certain that these measures are essential. They will guarantee the region’s sustainable development.”
Kobzev expressed his confidence in the potential for further collaboration. He stated, “We will secure a year-round prohibition on mining in energy-deficient regions of the Irkutsk region until 2031.”
At the same meeting, he directed the establishment of a “commission to ascertain the extent to which the new federal regulations would facilitate an increase in tax returns from the activities of miners in the north.”
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