The Russian authorities are targeting the growth of domestic cryptocurrency mining

In Novosibirsk, the arrest of a cryptominer underscores the government’s tougher stance on the unauthorized use of electricity in domestic mining.

The Department of the Ministry of Internal Affairs of the region, headed by deputy chief Kyryl Travin, found a violation of local government regulations and initiated a criminal case against the person.

During the raid in the Moshkovsky district, law enforcement officers recorded six administrative offenses related to the extraction of minerals.

The suspect allegedly used regional energy infrastructure to mine digital assets, prompting law enforcement to take action as residential mining continues to proliferate.

According to the regional authorities, the detainee earned about 12 million rubles using subsidized electricity.

This has sparked new calls for stricter mining regulations to prevent unauthorized use of the energy.

While the specific cryptocurrency of the detained miner remains unknown, local speculation suggests that Ethereum (ETH) may have been involved.

Novosibirsk is not the only one facing problems with unauthorized crypto mining, as other regions of Siberia, including Irkutsk and Buryatia, have reported similar cases.

Local government restrictions and new laws

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The new legislation, which will take effect on November 1st, aims to regulate “private cryptocurrency mining” and enforce stricter enforcement of local electricity restrictions for home miners.

The law, introduced earlier this month by President Vladimir Putin, is Russia’s second regulatory move in recent months to target small-scale mining operations.

Source: Crypto crimes

While the law clarifies some rules for home miners, it leaves gray areas as many small operators are unsure of their legal status.

Energy companies target unauthorized miners

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In response to a sharp increase in electricity consumption in regions such as Novosibirsk, electricity providers are stepping up efforts to identify and punish unauthorized cryptocurrency miners.

Reports suggest that “illegal” mining has been found in residential areas, remote forests and even near municipal facilities such as landfills and sewage works.

The increased controls come after a year of rising tensions between local authorities and miners who use subsidized energy intended for domestic use.

In an attempt to avoid law enforcement, some Siberian miners use mobile rigs, deploying “mobile mining cryptofarms” in cars.

These makeshift mining rigs, demonstrated in an online video, work stealthily to bypass the restrictions. Mobile operations have gained popularity among small-scale miners, who are facing growing challenges amid increased regulation.

Meanwhile, Russian lawmakers are considering a new tax aimed at industrial-scale mining, potentially bringing millions into state coffers.

This proposed tax underscores Russia’s move to integrate mining operations into a regulated system, allowing the government to monitor and capitalize on the growing crypto industry.