Russia Proposes New Regulations to Combat Illegal Cryptocurrency Mining

According to PANews, Russia's Ministry of Digital Development is drafting new regulations aimed at curbing illegal cryptocurrency mining. The proposed rules stipulate fines ranging from 100,000 to 200,000 rubles for individuals involved in unauthorized mining activities, while companies could face penalties of up to 2 million rubles. Additionally, any cryptocurrencies involved in illegal mining operations would be confiscated. The proposal is currently undergoing interdepartmental review. The regulations also explicitly prohibit the use of cryptocurrencies for payment settlements, with violators facing fines of up to 1 million rubles. Mining farm operators will be required to report mining data and wallet addresses to the financial regulatory authority. While current Russian policies permit household mining with a monthly electricity consumption cap of 6,000 kilowatt-hours, restrictions are enforced in ten regions. The Central Bank has stated that the confiscation of crypto assets will serve as the most effective deterrent.