Is mining a fire hazard? The Russian government wants to ban mining activities in ordinary residential areas

Russia is likely to ban bitcoin mining in large residential areas such as apartment buildings and high-rise buildings once a government agency figures out how to implement it.

Russian officials will reportedly discuss the possibility of banning Bitcoin mining operations in residential areas at an upcoming meeting of the Presidential Internet Commission.

The proposal was made by Ilya Massukh, president of the Information Democracy Foundation (IDF), a government-affiliated nonprofit that manages the federal government's citizen petition platform.

Massukh, who is also a member of the Presidential Internet Commission, proposed a ban on cryptocurrency mining in residential areas because electricity resources in such areas are insufficient to meet mining needs. He also pointed out that mining activities also pose a fire hazard due to the heat generated by mining machines.

Massukh said in an interview:

The building's electrical grid couldn't support this level of power consumption; nor could the ventilation system cope with the resulting heat. This could easily lead to a fire.

At the same time, the Russian Ministry of Finance is also trying to prevent the popularization of Bitcoin among the public. They plan to formulate rules that only qualified investors can buy and sell Bitcoin through exchanges.

Massukh is also skeptical about bitcoin mining in the country. Russia has been volatile on the legality of mining and whether to accept cryptocurrencies. Just last year, Russia's financial regulator, the Ministry of Finance, drafted a bill aimed at criminalizing bitcoin users and miners in the country, with up to seven years in prison.

Bitcoin itself is not allowed in the country. Therefore, the mined Bitcoins will enter some external exchanges. All mining activities carried out in the country are a waste of electricity, which will undoubtedly harm the efficiency of the Russian economy.

The media also quoted a "mining consultant" in the report, who believed that setting up a mining farm in a residential area would increase electricity consumption by 6 to 8 times.

While Russian authorities are looking to pass a law banning bitcoin mining in residential areas, Russian President Vladimir Putin’s internet adviser is trying to raise $100 million through an initial coin offering (ICO) to launch a large-scale bitcoin mining project. The country’s electricity costs are lower than in China, where most bitcoin mines are currently located.