Important Regulation on Cryptocurrencies Coming to Russia – Here Are the Details
Russia is preparing to increase penalties for unregistered cryptocurrency mining.
According to the revised draft of the Russian Criminal Code, published yesterday, individuals engaging in cryptocurrency mining without government permission face fines of up to 1.5 million rubles (approximately $19,000) and up to two years of compulsory labor.
The draft regulation includes stricter penalties for high-profit illegal mining activities. Accordingly, those engaging in cryptocurrency mining that generates significant income could face up to five years in prison, up to 480 hours of compulsory labor, and fines of up to 2.5 million rubles.
It is also stated that mining operations operating outside the formal economy and defined as “organized groups” may face fines of up to 2.5 million rubles, forced labor for up to five years, or imprisonment if they achieve large-scale profits.
A draft prepared by the Russian Ministry of Justice aims to more strictly regulate cryptocurrency mining activities in the country. Commenting on the matter, Russian Deputy Finance Minister Ivan Chebeskov stated that only about 30% of cryptocurrency miners are registered and operating within the legal framework.
