Russia Gets Tough On Crypto Miners—Illegal Operations Face Asset Seizures

Russia is gearing up to crack down hard on anyone mining cryptocurrencies without permission. Courts could grab miners’ coins and hand out big fines if a new set of rules moves forward. The plan comes from the Ministry of Digital Development, Communications, and Mass Media and is now under review by other government agencies.

Mining Rules Tightened

Based on reports, individual miners who break the rules could face fines of 100,000 to 200,000 rubles. That’s about $1,270 to $2,540. Solo operators and officials could see penalties double, reaching 200,000 to 400,000 rubles ($2,540 to $5,090).

Companies found running illegal operations would get hit hardest. They may pay between 1 million and 2 million rubles – roughly $12,730 to $25,455.

Power To Seize Digital Coins

According to Forbes Russia, judges would gain authority to confiscate crypto assets from anyone deemed to be mining off the books. This power could apply to people in mining pools and to larger industrial farms. The move is aimed at stopping unregistered mining that strains local power grids.

Last year’s law lets unregistered Russians mine at home, as long as they use under 6,000 kWh per month. That rule will stay in place, but it won’t apply everywhere.

About 10 regions, including some areas under Russian control, already have extra limits. Plus, anyone with past economic crime or terrorism convictions will be barred from mining.

The new draft also tackles payments in crypto. Anyone caught using digital coins for regular transactions outside the Central Bank’s sandbox could face fines up to 1 million rubles ($12,730).

The Central Bank says taking away someone’s coins will be the biggest deterrent.

Mining data centers and hosting firms would have to tell the anti-money laundering agency Rosfinmonitoring about how much crypto they mine. They’d also need to share wallet addresses. Missing those steps could lead to more penalties, though the exact fines aren’t clear yet.

The ministry wants to change the country’s code so that serious mining violations become criminal offenses. That would raise the stakes. Instead of just paying a ticket, offenders could face criminal records.

The proposal is still under interdepartmental review. If it clears that stage, it will go to lawmakers for approval. Until then, miners and firms will watch closely. Many expect this to push some out of Russia’s market or underground. Others may find ways to register and stay within the rules.

Featured image from Pexels, chart from TradingView