Crypto Mining News, Economy

Crypto Mining may start to be a concerning reason in Russia

The Russian Ministry of Finance requires to ban crypto miners from acquiring token compensations heading to what newspaper Izvestia has called “a de facto ban on the distribution of cryptoassets in Russia.

The newspaper said it had noticed the Ministry of Finance-drafted legislation plans about an imminent crypto law that lawmakers declare might be ready for political deliberation as early as this September.

Nevertheless, it may still be too early to ring the alarm bells, as the document resembles to be a consultation document that is anticipating legal analysis.

“I find it hard to believe this is a serious proposition, but if it is, it’s a cause for concern. The Ministry of Finance has generally been pretty reasonable on crypto matters. I’m not sure how effectively banning crypto mining will benefit this country financially.”

Crypto mining has flourished in Russia, where energy rates are low and cooling expenses often minimal.

But it seems the ministry may be inclined to move closer to the crypto-skeptic Central Bank’s opinion on crypto-related matters.

The ministry is satisfied to permit their people to proceed with crypto-mining, but not reap the rewards – and would seek to interject criminal liability for mining-related transgressions.

In both circumstances, the standards have now been met with friction from the production. Moscow national and crypto investment advisor Dmitriy Zaikov spoke to CNWN, affirming,

Offenders could be reportedly hit with penalties of up to $1,330 and prison sentences of up to seven years.

The Izvestia article authors noted,

“The wording of the document does not bode well for miners, since it is not clear how they would receive remuneration [under the proposals].”

Monthly share of total Bitcoin hashrate in April

Source: The Bitcoin Mining Map

The projects appear to go a step further than solely restricting crypto mining – and would explore to restrain businesses and people from “performing any transactions with cryptoassets,” per the Izvestia journalists, except three occurrences.

The ministry seems comfortable allowing crypto inheritances and enabling creditors to obtain assets in bankruptcy proceedings. Courts and law enforcement authorities would also be entitled to confiscate crypto funds as part of legal procedures.

You may also remember that another strong-worded crypto crackdown-advocating proposition was shot down in May this year following industry and government pushback.

A local industry insider has earlier informed CNWN that a comprehensive crypto law for Russia may evolve a year or more.

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