A law has now been drafted to impose severe penalties on Russian cryptocurrency miners who default on taxes.
As a result, Russian miners are expected to report in detail their Crypto asset holdings and cryptocurrency earnings as part of the requirements of the Cryptocurrency Mining Act. As part of the required information, cryptocurrency miners in Russia will submit their wallet addresses. If found to be in breach, they could face state prosecution.
Miners with up to 15 million rubles, or nearly $200,000, who fail to report their cryptocurrency earnings twice within three years face two years in prison and labor, if applicable. Violators may also be fined 300,000 rubles. For miners with up to 45 million rubles in cryptocurrency assets, they will be sentenced to four years in prison and a fine of up to 2 million rubles.
Currently, Russia’s cryptocurrency mining law is being revised in Moscow, and as part of the revision, anyone involved in any illegal cryptocurrency transactions will face hefty fines.
Russia Delays Cryptocurrency Mining Bill
Russia’s Ministry of Economic Development and other state departments have made so many efforts to legalize its cryptocurrency mining industry from September 2022, although the regions under consideration are only those with sufficient electricity. The first step they considered was to form a group to study effective and efficient criteria for operating a cryptocurrency mining ecosystem.
The Central Bank of Russia and the Ministry of Finance of the Russian Federation (MiFin) further confirmed that the law on cryptocurrency mining will only apply in areas with sufficient electricity. At the time, the bill was scheduled to be published before the end of the year. However, by the end of December, Russian authorities put the cryptocurrency mining bill on hold and postponed it until January.
The reason for the postponement is that “it could create avenues for the flight of capital from our country. On the surface, it will be an activity to buy crypto, but in reality, the main goal will be the flight of capital from our country,” said the chairman of the State Duma Committee on Financial Markets, A. Anatoly Aksakov said.
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