Proposed Measures for Cryptocurrency Mining Control in Russia
Authorities in Russia are proposing new measures to enhance control over cryptocurrency mining, particularly targeting illegal operations. Yevgeny Masharov, a prominent member of the Public Chamber of the Russian Federation, made headlines by suggesting that the government should be empowered to confiscate Bitcoin from miners operating outside the law. His remarks, reported by TASS, come amidst ongoing concerns about unregulated crypto activities, especially in regions with high energy consumption related to mining, such as Irkutsk Oblast.
Legal Pressure on Miners
Masharov believes that exerting legal pressure on miners will render illegal operations financially unviable. Legislation introduced last year mandates that miners using over 6,000 kWh monthly register with the Federal Tax Service, yet many evade compliance to avoid taxation. This trend has raised alarms in mining hotspots where illegal operations strain local energy resources, with Masharov asserting that the acceptance of his proposal would alleviate burdens on regions grappling with power shortages.
Current Legal Framework and Proposed Amendments
Currently, Russian law offers limited punitive measures against unauthorized miners, primarily fining those who steal electricity or exploit subsidized rates. Although bailiffs can confiscate mining apparatus, they are not authorized to seize the cryptocurrencies themselves. Masharov advocates for a legal amendment that would classify the crypto assets of illegal miners as intangible property, enabling their confiscation. He indicated that this proposal could be integrated into ongoing discussions regarding a bill that has already seen initial approval in the State Duma.
Concerns Over Illegal Mining Operations
The call for stricter regulations comes as relevant government agencies—including the Ministry of Energy and the Federal Antimonopoly Service—have highlighted a rise in organized illegal mining operations, which frequently sidestep official registration. In a supportive stance, Masharov has also previously suggested creating a governmental crypto fund that would utilize seized assets for public benefit, emphasizing that the current mechanisms for confiscating cryptocurrencies are inadequate.
Industry Insights and Market Sentiment
Amid the backdrop of these developments, industry leaders note that up to 90% of Russia’s industrial crypto mining is focused on Bitcoin. Recent bullish sentiment among cryptocurrency executives includes predictions of Bitcoin prices reaching unprecedented heights, contrasting with caution about potential short-term market fluctuations. As these regulatory discussions unfold, the balance between fostering innovation and mitigating illegal activities remains a critical concern for Russia’s government.
