🔥 Key Takeaways
- Russia’s Ministry of Justice proposes prison sentences up to 5 years for unregistered crypto mining operations.
- Fines can reach 2.5 million rubles for large-scale operations.
- The move aims to combat power theft and tax evasion in the crypto mining industry.
- Russia legalized crypto mining in November 2024, prompting a need for stricter regulations.
Russia Cracks Down on Illegal Crypto Mining with Harsh Penalties
Russia has taken a significant step towards regulating its crypto mining industry by proposing severe penalties for unregistered operations. The Ministry of Justice has unveiled a set of criminal penalties, including prison sentences and hefty fines, to combat power theft and tax evasion. This move comes after the country legalized crypto mining in November 2024, which has led to a surge in mining activities.
Penalties for Unregistered Crypto Mining
According to the proposal, individuals or organizations engaging in unregistered crypto mining operations can face prison sentences of up to 5 years. Additionally, fines can reach 2.5 million rubles for large-scale operations. These penalties are designed to deter illegal mining activities and encourage operators to register their businesses and comply with tax laws.
Combating Power Theft and Tax Evasion
The Russian government is concerned about the significant amount of power theft and tax evasion in the crypto mining industry. By introducing harsh penalties, the authorities aim to curb these illegal activities and ensure that mining operations are conducted in a transparent and lawful manner. This move is expected to boost the country’s revenue and reduce the financial losses caused by power theft.
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