Illegal crypto miners operating in Russia could lose their coins and face heavy fines under new rules formulated by the nation’s Ministry of Digital Development, Communications, and Mass Media.
Per a report from Forbes Russia, the ministry says its proposal is currently undergoing interdepartmental review.
However, if the plans are adopted as-is, Russian law agencies and courts will be given the power to seize crypto from illegal miners.
Russia: Miners May Be Fined for Flaunting Bans
Under the new proposal, Russian judges will also be able to punish individuals engaging in illegal mining. Courts will be able to hand out fines worth between 100,000 to 200,000 rubles ($1,272 to $2,544).
Maksut Shadayev, the Russian Minister of Digital Development, Communications, and Mass Media, speaking at the Federation Council earlier this year. (Source: Federation Council/VK/Screenshot)
Forbes Russia says it has seen the ministry’s proposal. It says Moscow also wants to fine and confiscate crypto from any individual found illegally participating in a mining pool.
Harsher fines still lie in store for solo entrepreneurs and officials. This group will have to pay between 200,000 and 400,000 rubles ($2,544 to $5088) if convicted.
Authorities will also gain the power to take coins from industrial miners who flaunt crypto mining rules.
The new rules will let courts impose a fine of 1 million ($12,728) to 2 million rubles ($25,456) on corporations involved in illegal mining.
The ministry wants to amend the country’s Code of Administrative Offenses, seeking to effectively make illegal mining a criminal offense.
Crypto Payments Could Also Be Criminalized
Under a law that came into force last year, unregistered Russian individuals can mine crypto at home, provided they do not use more than 6,000 kWh per month.
However, in some 10 Russian and Russian-controlled regions, mining restrictions apply. The law also states that people with unexpunged convictions for economic crimes, or those convicted of extremist or terrorist crimes, cannot mine crypto.
The law also bans certain electricity and grid management firms from mining crypto.
Additionally, the ministry plans to punish individuals and firms for making settlements in crypto in Russia outside the Central Bank-run crypto sandbox.
The ministry’s proposals include plans to fine people and firms who use crypto as a payment tool up to 1 million rubles ($12,728).
The Central Bank, however, appears to think that the threat of confiscating coins from people who seek to do business in crypto will be a bigger deterrent.
Andrey Medvedev, the bank’s Legal Department lead, told attendees at the St. Petersburg International Legal Forum 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.”
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No New Russian Mining Bans
The draft law also include clauses pertaining to mining infrastructure operators who fail to declare their operations to the anti-money laundering agency Rosfinmonitoring.
In Russia, the term mining infrastructure operators usually refers to data center providers and crypto mining hotel firms.
The law requires these firms to inform Rosfinmonitoring about the crypto mined at their facilities, as well as their crypto wallet identifier addresses.
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The development comes just days after the government decided against imposing new mining bans in more of Russia’s regions.
A government energy commission, chaired by Deputy Prime Minister Alexander Novak, ruled against a proposal to ban mining in Khakassia.
The commission also decided to postpone a proposed year-round ban on mining in the Zabaikalsky Krai and Buryatia regions.
This year, Moscow has approved a year-round ban on crypto mining in the southern part of the nation’s de facto Bitcoin mining capital Irkutsk.
The post Russia Set to Fine, Confiscate Coins from Illegal Crypto Miners appeared first on Cryptonews.
