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Russia's Stricter Crypto Regulations: Unregistered Miners Face Severe Penalties

Russia is ramping up its efforts to regulate cryptocurrency mining, particularly targeting unregistered activities.

The Ministry of Justice has proposed a new criminal article that introduces harsh penalties for miners who fail to register.

Under this proposal, unregistered miners could incur fines of up to 1.5 million rubles and face potential prison sentences of up to five years.

Only about 30% of miners in Russia are currently registered, indicating a significant underground industry operating without oversight.

The proposed legislation includes tiered penalties based on the scale of mining operations and the profits generated, adding to the regulatory complexity.

Organized groups involved in unregistered mining may face fines as high as 2.5 million rubles and severe prison sentences.

These regulations are partially motivated by the need to capture tax revenues and protect national infrastructure from unauthorized mining activities.

Authorities have already confiscated thousands of mining rigs, underscoring the extent of illegal operations within the country.

As the situation evolves, it is crucial for participants in the crypto space to stay informed about compliance requirements.

This regulatory shift illustrates Russia's intention to bring its crypto mining sector under a legal framework while increasing governmental oversight.