Novosibirsk Authorities Intensify Crackdown on Home Crypto Miners
Authorities in Novosibirsk have intensified their crackdown on home cryptocurrency miners culminating in the arrest of a local resident accused of electricity fraud. The crackdown comes amidst new legislation allowing regional officials to enforce electricity caps on mining operations. While home mining is not illegal miners must comply with new regulations that have left many small-scale operators confused. The effort is part of a broader trend in Siberia where law enforcement targets unauthorized mining setups as the government considers potential taxation for industrial miners to increase state revenue.
Novosibirsk Authorities Intensify Crackdown on Home Crypto Miners
In a notable enforcement action against home-based cryptocurrency mining operations Russia's Novosibirsk region has intensified its crackdown on such activities leading to the arrest of a local resident accused of committing electricity fraud. According to reports from Novosibirsk-based media outlet NGS law enforcement officials have launched investigations into the activities of individual miners operating in the area.
During a meeting with Governor Andrei Travnikov Kirill Travin who serves as the Deputy Head of the Novosibirsk Oblast’s branch of the Ministry of Internal Affairs provided details about the recent arrest. Authorities conducted a raid in the northeastern Moshkovsky District where they identified multiple administrative violations linked to the operations of a home miner. The unnamed individual was apprehended and a criminal case has been initiated against him as investigations continue into additional violations.
Travin reported that the accused miner allegedly generated significant revenue from his operations claiming he had earned approximately 12 million rubles which is equivalent to over $123000. Although the specific cryptocurrency mined was not disclosed local forum discussions suggest that Ethereum (ETH) was the asset in question.
In a related comment a local resident named Sasha shared insights into the home mining landscape in Novosibirsk. He indicated that many individuals are likely engaging in home-based crypto mining across the city noting instances of unusual noises emanating from residential units. While home crypto mining is not explicitly illegal in Russia recent legislation has legalized private mining provided that miners adhere to electricity usage caps set by local providers.
The recent crackdown on mining operations follows the enactment of a new law signed by President Vladimir Putin which empowers regional authorities to mandate the shutdown of mining rigs beginning November 1. This law represents the second legislative effort aimed at regulating crypto mining within the country within a matter of months.
However this legislation appears to have left several uncertainties for small-scale miners particularly regarding the use of subsidized electricity to power mining rigs. Home miners typically lack access to commercial power and the nuances of the law have raised concerns about its implementation.
Additionally power companies in the Novosibirsk region have intensified their search for unauthorized crypto mining activities with reports indicating that officials have discovered illegal mining setups in various locations including residential areas and near public facilities. This crackdown is part of a broader trend across Siberia where law enforcement agencies are targeting unauthorized mining operations in regions known for cryptocurrency activity such as Irkutsk and the Republic of Buryatia.
In the meantime some Russian miners have resorted to mobile crypto mining setups operating from vans and cars to avoid detection by authorities and power providers. In Moscow government officials are also considering taxation measures for industrial crypto miners aiming to generate substantial revenue for the Russian Treasury.
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