Ramzan Kadyrov Orders ‘Terrorist’ Label for Illegal Crypto Miners in Chechnya

Key Takeaways

• Chechnya has declared crypto mining a form of terrorism.
• The Russian government has expanded its crypto mining ban across several regions.
• AI-powered smart meters offer a promising solution to combat illegal mining.

Chechnya has decided to treat illegal crypto mining as a terrorist activity , enforcing severe penalties for those caught mining cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and others.

This new law, which takes effect on Jan. 1, 2025, grants authorities enhanced powers to combat illegal mining operations and protect the region’s electricity grid.

Chechnya’s Drastic Measures Against Crypto Mining

The law, which builds on a previous crypto mining ban  in Chechnya, has been supported by Adam Delimkhanov, a State Duma lawmaker.

Speaking on behalf of Chechen leader Ramzan Kadyrov, Delimkhanov likened illegal mining to terrorism, citing the social and economic damage it causes.

While industrial mining is predominantly focused on Bitcoin, a significant number of home-based miners in Russia are involved in Ethereum mining.

Russia’s Expanding Crypto Mining Ban

Though Russia has legalized crypto mining in certain areas, the government is tightening its grip on the practice nationwide.

At the end of December 2024, Moscow approved a sweeping ban that covers several regions, including Chechnya and territories annexed from Ukraine, such as the Donetsk, Luhansk, Zaporozhye, and Kherson regions.

This ban, which remains in effect until March 15, 2031, also applies to regions like Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, and North Ossetia.

Additionally, during periods of peak energy consumption, restrictions will be imposed in parts of the Irkutsk region, Buryatia, and the Trans-Baikal Territory.

Delimkhanov emphasized that the Shali region, which has seen a rise in illegal mining, would receive “special attention.” With the expansion of these bans, Russia is signaling a serious crackdown on unregulated mining activities.

AI-Powered Solutions for Illegal Mining

Amidst this crackdown, a technological breakthrough offers hope for curbing illegal mining: the development of an AI-powered smart meter.

Created by St. Petersburg State University, Lartech, and the Energomera group, the device represents the first electric meter with artificial intelligence designed to detect illegal consumption patterns, such as crypto mining.

Lartech CEO Dmitry Poltorak highlighted  the device’s potential to improve energy system transparency and security.

By analyzing energy consumption data in real time, the AI meter can automatically detect unusual patterns associated with mining activities, especially in residential areas where such operations are illegal.

In addition to detecting mining, the AI-powered meter is equipped with an anti-fraud system that can identify unauthorized connections and other forms of electricity theft.

The device could play a crucial role in minimizing illegal mining while optimizing energy distribution across the country.