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Russia Cracks Down on Unregistered Crypto Mining with Stricter Regulations

Russia is intensifying its regulatory approach to cryptocurrency, particularly targeting unregistered mining operations.

The Ministry of Justice has proposed substantial penalties, including fines up to 1.5 million rubles and prison sentences of up to five years for large-scale illegal mining.

These measures aim to address a growing concern about miners operating outside the legal framework, as only 30% of miners are currently registered.

The proposed legislation introduces Article 171.6, which includes tiered penalties based on the scale of illegal operations and the profits generated.

Significantly, organized groups profiting from illegal mining face harsher consequences, including imprisonment and fines that could reach 2.5 million rubles.

This regulatory push not only seeks to capture tax revenues but also aims to prevent damage to the national power grid caused by unauthorized mining farms.

Recent crackdowns have revealed the scale of illegal activities, leading to thousands of confiscated mining rigs and significant economic losses.

Authorities are becoming increasingly sophisticated in their enforcement methods, using technology and increased monitoring to combat underground operations.

The proposed penalties reflect a strategic effort by Russia to legitimize its growing crypto mining sector while ensuring compliance with legal standards.

As the regulatory landscape shifts, stakeholders in Russia's crypto space must stay informed to navigate the evolving environment effectively.