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- Russia plans strict fines to curb illegal crypto mining.
- Lawmakers link mining abuse to power grid stress.
- The bill aims to split legal and illegal mining clearly.
According to the report, Russian lawmakers have introduced a new bill to tighten control over crypto mining. The proposal sets clear financial penalties for illegal activity. Authorities want to protect the power grid and recover lost tax revenue. The bill now awaits rapid review in the State Duma.
As per the bill, individuals who mine cryptocurrency illegally would be charged a fine of 100,000 to 150,000 rubles. Officials would be charged more. Their fine would be 300,000 to 800,000 rubles. Legal entities would bear the heaviest burden.
The fines will range from one to two million rubles. For repeated offenses, the punishments will be more severe. For individuals, the payment will range from one to 1.5 million rubles. To officials, the fine will range from three to five million rubles. For legal entities, the payment will range from five to ten million rubles.
Fines Target Crypto Miners Exceeding Energy Limits
The bill also targets mining that exceeds the state’s energy limit or is carried out by unregistered miners. Authorities will fine these individuals between 100,000 and 150,000 rubles. Those doing it repeatedly will have to pay up to 1.5 million rubles.
For officials, the fine will be in the range of 200,000 to 300,000 rubles, but in the case of a repeated offense, it will increase to a maximum of 2.5 million rubles. For legal entities, the fine will be a maximum of 500,000 rubles, but in the case of
Mining infrastructure providers will also be targeted. Those that provide access to unregistered miners will be penalized up to 500,000 rubles. This will increase to five million rubles in case of repeated offenses.
Nikolai Shulginov, the head of the State Duma Energy Committee, called for the bill’s speedy consideration. “We have a situation where, according to current law, citizens can mask mining activities through the consumption of household electricity. Some of these activities bring in tens of millions of rubles, which aren’t subject to regulation,” he explained.
The low cost of electricity contributes to the practice being common. Legislators point out that this practice threatens the stability of the power grid. It increases the load on the power grid. It also accelerates the wear and tear of equipment. There may be shortages in other regions.
Market Split Into Legal and Illegal Mining
However, officials have warned that unregulated growth can undermine energy security. This bill is meant to fill the mentioned loopholes. This bill provides strict guidelines on energy consumption and registration. This is expected to alleviate pressure on the infrastructure, according to lawmakers.
According to Anatoly Aksakov, head of the State Duma Committee on Financial Markets, the new legislation will transform the mining industry. The authorities will divide the market into legal and illegal segments.
Authorities will further divide the illegal market into gray and black markets. Aksakov estimated that this costs the economy over 10 billion rubles a year. In addition, he cited losses of up to 9 billion rubles in taxes.
Before, the Ministry of Justice called for even harsher penalties. These included fines of up to 1.5 million rubles or forced labor of two years. For cases involving significant income or a group, the penalty could reach five years of imprisonment. This current proposal is a move towards establishing order in the crypto mining industry in Russia.
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