Russia’s Chechnya has planned to impose strict punishments for those indulging in illegal crypto mining. Residents found mining cryptocurrency like Bitcoin and Ethereum will be imprisoned by the Chechen government, which will punish illicit miners “like terrorists.”
The measures come amid harsh winters and a shortage of power supply, which has made it difficult for crypto miners to access electricity, creating tough competition in the market.
Chechnya Keeps Strict Watch on Crypto Mining Industry
The assertions were made by Adam Delimkhanov, a member of the State Duma from Chechnya. The MP was speaking in response to a recent ruling that banned cryptocurrency mining in nine other areas under Moscow’s influence, including Chechnya.
However, the incident is the not the only one where the Chechnya government has made a rather averted comment about the crypto industry.
Russia’s Ban on Crypto Mining in 9 Regions
In a surprising turn of events, Russia had made a major regulatory announcement, outlawing cryptocurrency mining in nine locations beginning on January 1, 2025.
As UnoCrypto reported earlier, the Donetsk and Luhansk People’s Republics, North Ossetia, Kabardino-Balkaria, Dagestan, Karachay-Cherkessia, Ingushetia, Chechnya, the Zaporizhia and Kherson areas, and other territories are all included in the TASS-announced prohibition, which will be in force until March 15, 2031.
This six-year ban is among the most comprehensive regional limitations on cryptocurrency mining that the Russian government has put in place.
According to the Cabinet of Ministers’ explanation to TASS, the fundamental goal of these limits is to preserve a balanced pattern of energy use that accounts for industrial demands.
The action is in line with Russia’s larger plan to control cryptocurrency mining while maintaining a steady supply of electricity for homes and vital businesses.
Chechnya’s Previous Aversion to Crypto Sector
Today’s statement is not the only time the region has seen strict aversion to crypto. Previously, in the light of the increased interest in cryptocurrencies among Chechens, Chechen leader Ramzan Kadyrov had made some harsh remarks against them.
Kadyrov asserted that the media is portraying cryptocurrency “as the new gold,” which he had described as causing a sort of Bitcoin frenzy. People fantasize of quick money, which, according to Kadyrov, provides a false promise of wealth that cryptocurrency does not and has never given.
However, the comments came at a time when Bitcoin had nearly slashed 50% in 2022. Today, the OG-cryptocurrency has surged past other financial assets, making many nations wonder if they should add Bitcoin to their reserves.