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Russia gets tough on crypto miners – illegal operations face asset seizures
Russia is tightening its grip on cryptocurrency mining activities, threatening harsh penalties for those who operate outside the law. The country’s Ministry of Digital Development, Communications, and Mass Media has proposed new regulations that aim to clamp down on unregistered or illegal mining operations.
According to reports, individual miners who disregard these rules could face fines ranging from 100,000 to 200,000 rubles (approximately $1,270 to $2,540). Solo operators and officials might see penalties double, reaching 200,000 to 400,000 rubles ($2,540 to $5,090). Meanwhile, companies caught running illegal operations could be slapped with fines between 1 million and 2 million rubles – roughly $12,730 to $25,455.
What’s more concerning is that the new regulations would grant judges the authority to confiscate digital coins from individuals or entities deemed to be mining without a license. This power would not only target individual miners but also larger industrial farms operating in secret.
The move appears to aim at curbing unregistered mining activities, which have been putting pressure on local power grids. Last year’s law allowed Russians to mine cryptocurrencies at home as long as they do not exceed 6,000 kWh per month. However, this rule will be suspended for the majority of regions and specific areas under Russian control.
Furthermore, the proposal also targets individuals with past economic crime or terrorism convictions. These individuals would be permanently barred from engaging in cryptocurrency mining activities.
In addition to the penalties mentioned earlier, those who use cryptocurrencies (bitcoin, Ethereum, etc.) for regular transactions outside of the Central Bank’s testing environment could face fines up to 1 million rubles ($12,730). The Central Bank believes that depriving an individual or entity of their digital coins would serve as a strong deterrent.
Mining data centers and hosting firms are also required under the new proposal to report to Rosfinmonitoring, Russia’s anti-money laundering agency. They will need to share information about how much cryptocurrency they mine and wallet addresses. Failure to comply with these rules might lead to additional penalties.
The Russian government is pushing for a significant shift in the way it regulates digital currencies. The proposed changes could lead to criminal charges if violations become severe enough. If approved, the country’s legal system will see a marked increase in its ability to crack down on those who disregard the new regulations.
In essence, Russia is trying to assert control over its cryptocurrency landscape.
Source: bitcoinist.com
