Russia's Crackdown on Rogue Crypto Miners

Russia is tightening its grip on crypto miners who operate outside the law. The government aims to eliminate illegal mining and ensure everyone contributes their fair share.

New Laws Proposed by the Ministry of Justice

The Ministry of Justice has introduced stricter regulations to penalize illegal miners. These laws could result in heavy fines and even prison sentences for those caught mining illegally.

• Severity of Punishment:
• Up to 5 years in prison for those profiting significantly from illegal mining.
• Fines for non-compliance.

Current State of Mining in Russia

• Only 30% of miners are registered with the government.
• Most miners operate illegally, avoiding regulation.

Registration and Taxation Rules

• Miners using less than 6,000 kWh of electricity per month do not need to register.
• All miners must pay taxes on the cryptocurrency they mine.

Foreign Mining and Regional Restrictions

• Foreign entities are banned from mining in Russia.
• Certain regions may face mining restrictions, sparking criticism over the lack of full legalization.

Implementation of New Laws

• Signed by President Vladimir Putin in August 2024.
• Effective from November 1, 2024.
• All miners must register and pay taxes under the new regulations.

This move marks a significant step toward regulating the crypto mining industry in Russia.