Regulations on virtual currency mining are being tightened in Russia. A new bill submitted to Russia’s State Duma will impose hefty fines for illegal cryptocurrency mining activities, with even harsher penalties expected for repeated violations.
According to the bill, individuals who mine without legal registration or permits will be subject to a fine of 100,000 to 150,000 rubles (approximately $1,230 to $1,850). Fines for civil servants range from 300,000 to 800,000 rubles (approximately $3,700 to $9,850). Legal entities (companies) are subject to fines of 1 million to 2 million rubles (approximately $12,350 to $24,700). For repeat violations, these fines become significantly higher.
Exceeding energy consumption limits or operating without being registered on the legal miners register are also considered separate offenses, according to previously published draft details. In this case, an individual can expect a fine of 100,000 to 150,000 rubles (approximately 1,230 to 1,850 USD), a civil servant can expect a fine of 200,000 to 300,000 rubles (approximately 2,470 to 3,700 USD), and an administrative fine of 400,000 to 500,000 rubles (approximately 4,940 to 6,170 USD for companies). In case of repeated violations, the amount can reach several million rubles.
Energy Committee Chairman Nikolai Shulginov said the bill should be passed quickly, noting that low electricity prices and existing laws allow mining to be classified as a “domestic activity.” Financial Market Committee Chairman Anatoly Aksakov explained that once the law comes into force, mining activities will be divided into “legal” and “illegal” categories.
*This is not investment advice.
