Russia May Ban Bitcoin Mining in Apartment Blocks

Blockchain, News, Regulation | September 5, 2017 By:

Russian authorities are considering a ban on bitcoin mining in large residential spaces like apartments and high-rise flats.

The government’s Informational Democracy Fund will recommend banning participation in mining pools from private addresses at an upcoming meeting of a working group on Internet growth, according to a report by Russia Today.

Information Democracy Foundation president Ilya Massukh, who is also a member of the Internet council under the President, will propose the ban by arguing that electricity resources at residential flats are inadequate for mining cryptocurrency. Massukh also claimed mining activity is a fire hazard due to the heat generated by the mining hardware.

“Electric networks at blocks of flats are unlikely to stand such consumption; ventilation systems are not able to handle the generated heat, either. This could trigger a fire,” said Massukh.

Massukh added that anything mining-related that continues inside the country is a waste of electricity. “It’s somewhat doubtful in terms of efficiency for the Russian economy,” he said.