Local media quoted a legal expert who said that Russian university students who are engaging in cryptocurrency mining in their dormitories could find themselves facing penalties and even criminal charges. This warning comes as authorities in Russia are trying to put a stop to crypto mining in residential areas with cheap energy. There is an increasing number of Russians who have established improvised crypto farms in places where they have access to subsidized electricity, such as their homes. Therefore, students have also been warned that mining these digital coins in their dorms could also be considered a criminal violation of the law.
Hailing from Gorgadze and Partners legal firm, Vladimir Shelupakhin said that at the very least, the universities could demand that students pay for the excessive consumption of power. He added that there could be cases where the amateur miners could face prosecution for their crimes. The report also noted that there could be significant material damages because of mining. If the university has to pay a higher electricity bill due to mining, it could ask the students who will be found mining cryptocurrency to compensate for the additional charges. However, if the miners refuse to pay for the additional expense, Shelupakhin said that they could end up paying for it with their freedom.
The legal expert said that if it wasn’t possible to identify the crypto miners, then it is essential to report it to the police. If this happens, then the violators would have to bear criminal liability and this would be in accordance with article 165 of the Criminal Code (Causing property damage by breach of trust or deceit). Crypto mining has become a profitable business in Russia, not just for companies, but also for a number of ordinary Russians, who are using it as a means of generating alternative income. The household electricity in Russia is subsidized and it is significantly cheaper, as opposed to the power that is sold to companies, particularly in energy-rich areas.
For instance, there has been an increase in consumption in Irkutsk by the population, where the electricity rates begin at just $0.01 per kWh. These rural areas have seen the consumption go up as much as four times in 2021 alone and according to authorities, this is primarily because of crypto mining hardware being operated in garages and basements. Miners have been blamed for outages and breakdowns. Members of the parliamentary Energy Committee have given suggestions recently to the federal government for dealing with the issue, which include a set of measures for curbing home mining.
This move comes similar proposals were sent by the Russian association of energy suppliers to the lower house of parliament i.e. State Duma. The lawmakers want utilities to have the authority of disconnecting illegal miners from the grid and also require consumers to disclose the intended use of the energy they are consuming. They have also insisted that internet providers should also be required to share the IP addresses of suspected crypto miners, along with data about their mining activity.
