Russian illegal cryptocurrency mining faces crackdown.

Jafar224

Over the past week, the cryptocurrency mining industry in Russia has faced severe crackdowns by authorities, resulting in the closure of two major data centers and the seizure of over 400 mining rigs. This crackdown has been concentrated in Siberia and the Republic of Dagestan, revealing the complex regulatory landscape faced by cryptocurrency mining in Russia, which remains in a legal "gray area."

In one operation in the city of Iskitim in the Novosibirsk region, law enforcement raided an abandoned boiler room where they discovered illegal electrical connections powering over 100 ASIC devices used for cryptocurrency mining. These mining rigs, specifically designed for cryptocurrency mining, were operating on racks several meters high.

The energy company AO RES, reporting on the incident, estimated losses to the power grid caused by illegal miners in the millions of rubles. The seizure of "gray" equipment indicates authorities' willingness to crack down on the proliferation of illegal mining activities within the country, despite the lack of legal clarity surrounding these activities.

Meanwhile, in Dagestan, an investigation by the Russian Ministry of Internal Affairs revealed that a large-scale mining "farm" was operating illegally within an abandoned brick factory. This operation was prompted by reports of illegal electricity usage, leading to the disconnection of 300 GPU-equipped mining rigs. The investigation is ongoing, but authorities have indicated the possibility of bringing criminal charges against the perpetrators, who could face up to five years in prison.

This situation highlights the increasingly challenging regulatory landscape Russia faces in regulating its cryptocurrency mining industry. Despite being one of the largest global players in the field, the activity remains in regulatory limbo due to the lack of specific legislation. Major mining companies like BitRiver have been advocating for clear legal definitions to better legalize and structure the industry. The future of the industry in Russia remains uncertain until legislation is passed by the Russian government to classify cryptocurrency mining as a form of entrepreneurship.

Isha000

Being cracked down on, it's also going to be trapped.

Jiten171

Take a look at those that have been mining.

Janak9955

Since it's illegal, it's all within the scope of crackdown.

Jatin255

Their industry is currently not in a time for great development.