Russian authorities are stepping up their focus on illegal cryptocurrency mining in households, with a recent arrest in Novosibirsk of a man running large-scale mining activities without permission. This crackdown comes as Russia intensifies monitoring of energy consumption and regulating crypto mining in Siberian regions. Law enforcement reports that the miner used subsidized electricity to power his equipment and allegedly profited over 12 million rubles (around $123,000).
Novosibirsk Tightens Actions Against Crypto Mining
The arrest of a miner in Novosibirsk highlights a stricter stance against unauthorized use of electricity for home cryptocurrency mining. The regional Ministry of Internal Affairs, led by Deputy Chief Kirill Travin, identified violations of local power regulations and initiated criminal proceedings.
During a raid in the Moshkovsky District, authorities reported six administrative violations linked to mining activities. The arrested miner allegedly used the regional energy infrastructure for mining digital assets, prompting authorities to act as similar activities in households continue to grow.
According to regional sources, the miner profited approximately 12 million rubles through subsidized electricity use, reigniting calls for stricter regulations. Although the specific cryptocurrency mined remains unknown, speculation suggests it could be Ethereum (ETH). Similar cases of illegal mining have also been reported in Irkutsk and Buryatia.
New Legislation to Limit Home Crypto Mining
A new law, set to take effect on November 1, aims to restrict “private cryptocurrency mining” and enforce stricter compliance with local power limits for domestic miners. Recently introduced by President Vladimir Putin, this law marks another step in Russia’s efforts to restrict small-scale mining operations.
While the new law provides clearer guidelines for household miners, legal uncertainties remain, potentially creating ambiguity for smaller miners regarding their status.
Energy Providers Target Unauthorized Miners
In response to increased electricity consumption in regions like Novosibirsk, energy providers are intensifying efforts to identify and penalize unauthorized crypto miners. Reports indicate that “illegal” mining operations have been discovered in residential buildings, remote forests, and even near city facilities, such as landfills and wastewater treatment plants.
Amid rising tensions between local authorities and miners using subsidized residential energy, some miners are adopting new methods to avoid enforcement. On the Siberian front, “mobile crypto mining farms” installed in vehicles have gained popularity, allowing small-scale miners to stay mobile and circumvent regulations.
Russia’s Plans to Tax Industrial Miners
Russian lawmakers are also considering a new tax targeting industrial mining companies, potentially generating significant revenue for the state. This proposed tax highlights Russia’s shift towards integrating crypto mining within a regulated framework, allowing the government to monitor and benefit from the emerging crypto industry.
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