Russia is getting serious about illegal cryptocurrency mining. New rules are in the works that could mean hefty fines and even the seizure of your crypto!
Big Fines and Asset Seizures
The proposed rules, currently under review, lay out some pretty stiff penalties for unauthorized mining. Individuals could face fines ranging from $1,270 to $2,540, while businesses could be hit with fines between $12,730 and $25,455. Even worse, courts could seize the crypto assets of anyone caught mining illegally, whether they’re solo miners or part of large operations. This crackdown aims to stop unregistered mining that puts a strain on the power grid.
Existing Rules and New Restrictions
While individuals are currently allowed to mine at home using less than 6,000 kWh per month, this won’t apply everywhere. Around 10 regions, including some under Russian control, already have stricter limits. And anyone with a criminal record for economic crimes or terrorism is banned from mining altogether.
Crypto Payments Under Scrutiny
The new rules also target using crypto for everyday transactions outside of the government’s controlled environment. Fines of up to $12,730 could be levied for this. The government believes seizing crypto assets will be the most effective deterrent. Data centers and hosting firms will also be required to report their mining activities and wallet addresses to the anti-money laundering agency. Failure to comply will result in additional penalties.
Criminal Charges on the Horizon
The proposed changes could even make serious mining violations criminal offenses. This means instead of just a fine, people could face a criminal record. The proposal is still being reviewed, but if approved, it could drive many miners out of Russia or underground. Others might try to register and comply with the new regulations.
