Russia is pushing new rules on cryptocurrency mining by introducing criminal charges for those who operate without official registration.
The initiative follows concerns from government officials about the scale of illegal mining and the loss of potential tax income.
According to a new proposal from the Ministry of Justice, unregistered miners could face fines of up to 1.5 million rubles (about $19,000) and up to 2 years of compulsory labor.
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The draft law also outlines tougher consequences when mining brings in large profits. In such cases, offenders could face a prison sentence of up to 5 years, be ordered to perform 480 hours of forced labor, and be fined 2.5 million rubles.
If an organized group carries out unregistered mining and results in high earnings, the same upper penalties, five years in prison or forced labor, and a fine of up to 2.5 million rubles would apply.
The authorities require miners to submit a monthly tax form showing the amount of cryptocurrency they have generated. However, progress toward full compliance remains limited.
As of June 19, Deputy Finance Minister Ivan Chebeskov reported that only about 30% of miners had officially registered their activities.
He told news outlet Tass, “Our general approach when we introduced mining regulation into this industry was to bring this industry out of the shadows as much as possible. We have not yet completed this process”.
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