Russia's southern republic of Dagestan is advocating for stricter actions against cryptocurrency miners who, according to local officials, are responsible for electricity shortages and are attempting to bypass regulations by constructing mining facilities underground. 

In recent years, cryptocurrency miners have faced increased scrutiny globally due to the significant computing power required to solve intricate algorithms, which necessitates specialized hardware that operates continuously and consumes large amounts of electricity. 

Abdulmuslim Abdulmuslimov, Dagestan's local prime minister, emphasized the need for authorities to focus more on illegal crypto mining activities following a fire at a substation in the capital, attributed to a surge in electricity usage linked to these miners. 

"The operators of unauthorized cryptocurrency mining sites are devising new strategies to 'evade' the law, including the installation of mining farms underground," Abdulmuslimov stated. 

The Dagestan government has released video evidence of investigators examining a crypto mining operation located in a makeshift underground space, equipped with numerous fans to cool the machinery. 

Legislation regarding cryptocurrency mining, which has been signed by President Vladimir Putin, is set to take effect under specific conditions starting November 1, 2024. A dedicated register will be established by the finance ministry for companies involved in cryptocurrency mining, and individuals engaged in mining digital currencies will be required to submit certain information to Russia's financial monitoring authority.