Regulations surrounding cryptocurrency mining in Russia are set to become stricter as a new bill has been introduced to the State Duma. The proposed legislation aims to impose substantial fines for individuals and entities engaged in unlawful mining activities, with particularly heightened penalties for repeat offenders.
Under the new proposal, individuals who mine cryptocurrency without the appropriate legal registration or permission could face fines ranging from 100,000 to 150,000 rubles, which is approximately $1,230 to $1,850. Public officials will face even steeper penalties, with fines set between 300,000 and 800,000 rubles, equivalent to roughly $3,700 to $9,850. Corporations engaging in illegal mining can incur fines in the range of 1,000,000 to 2,000,000 rubles, translating to approximately $12,350 to $24,700. Importantly, these fines will increase significantly for subsequent infractions.
The bill establishes additional categories of violations, such as exceeding prescribed energy consumption limits or failing to register in the official miners’ registry. For individuals, fines for these offenses would similarly range from 100,000 to 150,000 rubles. Public officials could incur administrative fines between 200,000 and 300,000 rubles, while companies would be subjected to fines of 400,000 to 500,000 rubles. Repeat offenses could lead to fines reaching several million rubles.
Energy Committee Chairman Nikolay Shulginov emphasized the urgency of passing the bill, stating that low electricity tariffs and existing laws have facilitated the perception of mining as a “domestic activity.” Financial Markets Committee Chairman Anatoliy Aksakov added that the legislation would help distinguish between “legal” and “illegal” mining activities once enacted.
As the regulatory landscape evolves, these measures reflect a growing commitment to regulate cryptocurrency mining in Russia, potentially fostering a more organized and transparent industry. By addressing illegal mining practices, the government aims to create a safer environment for legitimate operators while ensuring compliance with the law.