The head of Dagestan, Sergei Melikov, appealed to the Russian government with a request to introduce a ban on cryptocurrency mining on the territory of the republic until the situation in the energy grid complex “stabilizes.”

The regional administration said that the activities of mining farms lead to a shortage of electricity, which affects the quality and reliability of power supply to local consumers.

“Taking into account that a ban on this type of activity can be adopted by a special decision only on the territory of individual subjects, Sergei Melikov signed an appeal to the country’s government with a request to take into account the peculiarities of the region,” administration officials explained.

The authorities of the republic claim that electricity consumption in Dagestan has increased sharply and the wear and tear of electrical networks exceeds the Russian average, which leads to an “increase in technological violations.” Specialists from Dagenergo (a branch of Rosseti Northern Caucasus) talked about dozens of cases of electricity theft by mining farms.

Earlier, the Kommersant newspaper, with reference to the draft protocol of the government Commission for the Development of Electric Power Industry, reported that the Cabinet of Ministers had decided on a list of regions where cryptocurrency mining could be banned from December 1. The list includes the republics of the North Caucasus, including Dagestan.