Russian Crypto Mining Bill Says Report Earnings or Risk Jail Time

A new Russian cryptomining law requires miners to declare their earnings or face prison and forced labor. Meanwhile, the country has subsidized a mining facility in Siberia.

Russia’s government has issued a new order requiring cryptocurrency miners to report earnings or face jail time. Local media have reported that miners will have to declare this income or face up to four years in prison.

The deputy head of the ministry, Alexei Moiseev, sent the order to relevant departments last month, following a meeting with several senior officials in January.

In addition to recording the earnings, miners must also provide information related to the transactions, namely the wallet addresses. The exact penalty, if found guilty, varies depending on how much of an income is earned.

Those who evade an income declaration of about $200,000 twice in three years will face up to two years in prison and up to two years of forced labor. Those who have earned more than $600,000 will face up to four years in prison and forced labor of the same duration.

The notice also refers to a forthcoming set of regulations for the asset class. Russia is expected to create a registry of cryptocurrency exchanges. The crypto entities that do not follow the framework can face imprisonment of up to seven years.

In addition, there was also a change in laws with regard to money laundering. Miners must provide information about those involved in the process and other information about the operation.

Russia opens crypto mining facility in Siberia

Russia has been trying to rein in the mining industry for a long time, as evidenced by the statements in the notice. However, it has also made some concessions in recent months. The government provided tax incentives for those interested in mining, and helped open a $12 million crypto mining facility in Siberia.

This mining center will have 30,000 mining rigs and a total output of 100 megawatts. The facility is due to start operating in the first half of 2023. Russia’s economy is experiencing major damage as a result of economic sanctions, so the mining facility should offer some relief. It is also launching a state-run crypto exchange to raise tax revenue.

Russia Considers Gold Stablecoins

Russia has also taken other steps to reduce the economic impact of the invasion of Ukraine. It is working with Iran to release a gold stablecoin, hoping to replace the US dollar, ruble and Iranian rial for international payments.

Meanwhile, there are reports of crypto being involved in nefarious activities. Recent reports indicate that fake bomb threats in North Macedonia have involved crypto payments to avoid tracking.