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A draft law designed to regulate crypto mining in Russia introduces severe penalties for miners who fail to report digital assets to the state. In its latest revision, the bill also threatens to punish those who organize illegal trade in cryptocurrencies with prison terms and heavy fines.
Russian crypto miners will have to report their earnings and provide tax authorities with detailed information about their digital assets, including wallet addresses, to avoid prosecution by the state. This is according to a draft law currently under review in Moscow.
A bill meant to regulate Russia’s growing coinage industry was first introduced to parliament in November. However, the enactment was later postponed until this year, and lawmakers now plan to resubmit it with changes that envision severe consequences for miners who don’t comply.
The Russian Ministry of Finance, which is working on the changes, now wants to introduce severe penalties for those who evade declaring their crypto. This includes fines of millions of rubles and prison terms, the online newspaper Baza reported.
According to changes to the criminal code prepared by the department, if miners do not report their earnings twice in three years and the value is over 15 million rubles (close to $200,000), they will face up to two years in prison, a fine of up to 300,000 rubles, and even forced labor for up to two years.
If the amount of unreported assets exceeds 45 million rubles in fiat equivalents (almost $600,000), the punishment will be more severe – up to four years in prison, a fine that can reach 2 million rubles, and forced labor for up to four years. report in more detail.
Cryptomining companies will have two options to sell the mined cryptocurrency – on a foreign currency or on a Russian trading platform established under “experimental legal regimes” that have not yet been established. This is something that the Bank of Russia has insisted on in order to support the legalization of mining.
Exchange operators, banks or other legal entities, will be added to a special register, and any coin trading activity outside the described legal framework will be seen as a violation of the law, where the penalties are even heavier than those prescribed for miners. “Illegal organization of circulation of digital currencies” will lead to a prison sentence of up to seven years, a fine of up to 1 million rubles and forced labor for up to five years.
In the latest version of the mining bill, the authors have also added provisions on the prevention of money laundering. According to the texts, cryptocurrency owners are “obliged to provide the authorized body with information about their operations (agreements) with digital currency upon request.”
What are your thoughts on the new changes to the Russian cryptomining bill? Share your thoughts on the topic in the comments section below.
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