Students Mining Crypto in Dorms May Face Criminal Prosecution in Russia, Lawyer Says – Mining Bitcoin News

Local media quoted a Russian legal expert as saying that university students could be charged with criminal offenses for creating digital currency at their dorms. Russian authorities want to stop crypto mining in residential areas by providing cheap energy.

Russian students may find mining a risky undertaking

Students have been advised that illegal crypto-farms can be a crime and should not be allowed to operate in areas without electricity.

Vladimir Shelupakhin, a lawyer at Gorgadze and Partners, told the RIA Novosti news outlet that universities would demand payment for excess energy consumption. He said that amateur miners could be charged with crimes in some instances.

The report states that mining can lead to significant material damages. The lawyer explained that if a university has to pay more for electricity, they may be able to seek damages from students who were caught creating cryptocurrency. Shelupakhin said that miners who refuse to pay for these costs could be subject to criminal prosecution.

“If it isn’t possible to identify the miners, then it is necessary to report to the police. And in this case, the violators will bear criminal liability under article 165 of the Criminal Code (Causing property damage by deceit or breach of trust),” the legal expert specified.

Russian crypto mining is not only profitable for large companies, but also provides an additional income stream for ordinary Russians. The country’s household electricity is subsidised and cheaper than that sold to businesses, particularly in energy-rich areas.

Irkutsk’s population has consumed four times more electricity than usual. Rural rates in Irkutsk start at $0.01 per kWh. The increase in consumption is believed to be due to increased mining hardware that runs in basements or garages. Outages and breakdowns have been attributed to miners.

To address this issue, the members of the Energy Committee suggested that the federal government adopt a series of measures designed to reduce home-mining. After similar proposals were made by the Russian energy supplier association to the State Duma lower house, this is the latest move.

Legislators want utilities to allow illegal miners to be disconnected from the grid, and that consumers declare their intended use for the electric energy. The lawmakers also demand that internet providers be required to disclose the IP addresses and other information about suspected miners to authorities.

What do you think Russia will do to home crypto miners in the future? Please comment below with your opinions.

Lubomir Tassav

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.