Russia Drafts New Crypto Mining Regulations to Combat Illegality – Coincu

On June 11, the Russian Ministry of Digital Development drafted new rules aimed at illegal cryptocurrency mining, proposing fines and asset confiscations for violators within the nation.

This proposal signals a tightening of cryptocurrency controls as mining and payments face new restrictions, impacting Russia’s crypto industry.

New Fines and Confiscation Rules for Illegal Mining

The Russian Ministry of Digital Development is advancing regulations targeting illegal cryptocurrency mining. Violators face fines between 100,000 to 2 million rubles. Cryptocurrencies involved will be confiscated, signaling a strict enforcement agenda by Russian authorities.

Demand for adherence is underlined by strict mandates. Mining farm operators must report data and wallet addresses to designated authorities. These reforms emerge as part of ongoing cross-departmental reviews. Prohibitions on using cryptocurrencies for payments include 1 million ruble penalties.

Maksut Shadayev, Minister of Digital Development, Russian Ministry of Digital Development, Communications and Mass Media, – “The Russian Ministry of Digital Development is drafting new regulations to combat illegal cryptocurrency mining.”

While no official ministerial comments have surfaced, the Russian Central Bank aligns with the proposal, emphasizing that confiscating assets acts as a deterrent. Russian public and communities exhibit mixed responses as cryptocurrency enthusiasts assess potential impacts.

Russian Crypto Controls Spur Industry Reactions

Did you know? Russia’s central bank has been a vocal advocate for strict crypto controls, promoting measures like asset confiscation to curb illegal mining—a contrast to countries endorsing crypto growth.

As of June 11, CoinMarketCap reports Bitcoin’s price at $109,580.39, reflecting a 0.15% decrease over 24 hours. Though trading volumes decreased by 6.78%, Bitcoin enjoys dominance at 63.18%, with a market cap exceeding $2 trillion.

Insights from Coincu suggest that Russia’s mining rules may prompt technological shifts. Increased scrutiny could drive innovation in eco-friendly mining processes, ultimately transforming market dynamics in both domestic and global contexts.