Russia is preparing to tighten penalties for unregistered cryptocurrency mining.
According to a draft amendment to Russia’s criminal code released yesterday, individuals who engage in cryptocurrency mining without government permission will be subject to a fine of up to 1.5 million rubles (approximately $19,000) and up to two years of forced labor.
The draft regulations include increased penalties for highly profitable illegal mining activities. Therefore, those engaged in cryptocurrency mining that generate large amounts of income can be sentenced to up to five years in prison, up to 480 hours of forced labor, and a fine of up to 2.5 million rubles.
It is also stated that mining operations that operate outside the framework of the formal economy and are defined as “organized groups” may be subject to a fine of up to 2.5 million rubles, forced labor for up to five years, or imprisonment if they make large profits.
A draft law prepared by Russia’s Ministry of Justice aims to more tightly regulate cryptocurrency mining activities in the country. Regarding this issue, Russia’s Deputy Finance Minister Ivan Chebeskov said that only about 30% of cryptocurrency miners are registered and operate within the legal framework.
*This is not investment advice.
