Russia has introduced a draft law aimed at curbing unregistered cryptocurrency mining activities within its territory by imposing strict fines and penalties on illegal miners. The proposal from the Ministry of Justice stipulates fines up to 150,000 rubles (approximately $19,000) and up to two years of forced labor for unregistered miners. If substantial profits are made from illegal mining, penalties may increase to five years in prison, 480 hours of forced labor, and fines up to 250,000 rubles (around $31,800). These amendments have been incorporated into the criminal code and will also apply to organized groups involved in unlawful mining.
In recent years, the Russian government has taken multiple steps to regulate the cryptocurrency mining sector and generate revenue from it. Miners are now required to report their digital currency production monthly to tax authorities. However, according to Deputy Finance Minister Ivan Chebiskov, only 30% of miners had registered their activities by June 2024. The government aims to bring the industry under legal oversight, though the process remains incomplete.
Miners consuming less than 6,000 kWh of electricity monthly are classified as individuals and exempt from federal tax registration but must pay personal income tax on their mined cryptocurrency. This regulation will take effect from November 1, 2024. By the end of October, 1,364 miners had registered in Russia. In August 2024, President Vladimir Putin signed laws enforcing regulatory frameworks for cryptocurrency mining, effective November 2024. These laws mandate registration and tax payments for all mining entities and infrastructure providers, prohibit foreign entities from mining in Russia, and grant the government authority to restrict mining to designated areas. Some critics argue these laws do not fully legalize crypto mining nationwide.
These measures represent Russia’s efforts to control the cryptocurrency mining sector and leverage it for economic benefit. However, the full legal status of the industry and its impact will become clearer in the coming days.
Source: binance
