- Ah, Russia proposes harsh fines and crypto confiscation for illegal mining operations. How quaint!
- Mining infrastructure firms must report activities to Rosfinmonitoring or face penalties. Because who doesn’t love a little oversight?
As the world embraces crypto like a long-lost relative, Russia tightens its grip, scrutinizing every digital coin with the fervor of a cat eyeing a laser pointer.
Russian government to punish illegal miners
In a move that could only be described as “vintage Russia,” the Ministry of Digital Development, Communications, and Mass Media has proposed penalties that would make even the most hardened criminals shudder. Yes, they’re coming for the illegal crypto miners!
The new measures, currently undergoing interdepartmental review (because what’s a good crackdown without a bureaucratic tango?), would empower law enforcement to confiscate cryptocurrencies and slap hefty fines on those daring enough to engage in unauthorized mining operations.
If these rules are approved, they will dramatically alter the landscape of crypto-related offenses, especially for those brave souls mining without a license or participating in illegal mining pools. It’s like a game of Monopoly, but with real money and much harsher consequences.
Moreover, the Ministry aims to extend its iron fist beyond the individual miners. Yes, industrial mining operations, beware! Your days of breaking the rules may soon be numbered.
Repercussions faced by offenders
The ministry plans to fine corporations found guilty of illegal mining between 1 million and 2 million rubles ($12,728 to $25,456). That’s right, folks, it’s time to amend the nation’s Code of Administrative Offenses. Who knew mining could be so costly?
Under current laws, unregistered individuals can still mine crypto at home, provided they keep their energy consumption below 6,000 kWh per month. A small price to pay for the thrill of potential confiscation!
Authorities have already imposed tighter restrictions in about ten regions, and they’ve even barred individuals with certain criminal convictions from mining. Because nothing says “trustworthy” like a criminal record!
The proposals also aim to penalize crypto-based transactions made outside the Central Bank’s sandbox, with fines of up to 1 million rubles for violators. Sandbox? More like a minefield!
The Central Bank believes that threatening to confiscate assets will serve as the strongest deterrent against unauthorized crypto activity. Because nothing says “stay away” like the fear of losing everything!
Andrey Medvedev, the bank’s Legal Department lead, remarked last month,
“The key thing is that the [crypto] illegally used as a means of payment will be confiscated. And this will be the most painful thing.”
What’s more?
Adding another layer to its regulatory push, the draft law also targets mining infrastructure operators, such as data centers and crypto mining hotel providers, who fail to report their activities to Rosfinmonitoring, Russia’s anti-money laundering watchdog. Because who doesn’t love a good report?
These operators will be required to disclose details about mined assets and wallet identifiers tied to their operations. It’s like a game of hide and seek, but the government always finds you!
Interestingly, this development coincides with a recent decision by a government energy commission led by Deputy Prime Minister Alexander Novak to reject further regional mining bans. A glimmer of hope, perhaps?
While a year-round mining prohibition has already been enacted in parts of Irkutsk, similar proposals for Khakassia, Zabaikalsky Krai, and Buryatia have been shelved for now. It seems the regulators are finally learning to think before they leap!
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2025-06-12 04:14