Russia Cracks Down on Illegal Crypto Mining

Russia Targets Illegal Crypto Mining with Strict Penalties

Russia is intensifying its crackdown on illegal cryptocurrency mining activities. The Ministry of Digital Development, Communications, and Mass Media has proposed significant changes to the nation’s Code of Administrative Offenses, introducing hefty fines and asset seizure for unauthorized operations. This move reflects a broader global trend of increasing scrutiny surrounding cryptocurrency misuse.

Proposed Penalties for Illegal Miners

• Fines: Corporations face fines ranging from 1 million to 2 million rubles ($12,728 to $25,456) for illegal mining.
• Confiscation: Authorities will have the power to confiscate cryptocurrencies from both individuals and industrial operations engaged in unauthorized mining.

Currently, individuals can legally mine at home, provided their energy consumption remains below 6,000 kWh per month. However, stricter regulations are being implemented in various regions, and individuals with criminal records may be prohibited from mining altogether.

Targeting Mining Infrastructure Operators

The proposed legislation extends beyond individual miners. Mining infrastructure providers, such as data centers and crypto mining hotels, will be required to report their activities to Rosfinmonitoring, Russia’s anti-money laundering agency. Failure to comply will result in penalties. This reporting mandate includes details on mined assets and associated wallet identifiers.

Shifting Regulatory Landscape

This crackdown comes despite a recent decision by a government energy commission to reject further regional bans on cryptocurrency mining. While some regions have already implemented year-round bans, proposals for additional restrictions have been put on hold, suggesting a more nuanced approach to regulating the sector is emerging.

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