Russia to strengthen cryptocurrency mining regulations, new penalty system launched

The proposed amendments to the Criminal Code by the Russian Ministry of Justice are attracting attention. They aim to introduce strict penalties for illegal cryptocurrency mining.

Details of Penalties and Hierarchical Structure

According to the proposal, unauthorized mining activities will be subject to a fine of 1.5 million rubles or two years of forced labor. In more severe cases involving large-scale illegal mining, the newly established Article 171.6 could impose a maximum of five years in prison.

A particularly noteworthy point is that this provision is designed to focus on cases that cause significant economic damage or generate enormous illegal profits. It distinguishes between individual-scale activities and organized illegal mining by companies, enabling stricter enforcement.

Coordination with International Regulatory Frameworks

This amendment is currently published on the official legal portal, and public comments are being solicited. Behind Russia’s move is a strategic effort to align with international standards for combating the financing of terrorism (CFT).

Market Impact

Strengthening regulations in anticipation of crypto apex could directly affect liquidity within Russia. As illegal mining is more strictly regulated, the position of legitimate mining operators is likely to be strengthened, while the overall supply structure of the cryptocurrency market may also change. This issue is not limited to Russia alone but could influence the dynamics of the global cryptocurrency market.