- The tax agency gave re-assurance that the data is kept in a different internal protected system and is fully safe.
- A surge in leaks came as firms witnessed reduced fines. However, by the end of last year, the Russian State Duma accepted a bill increasing fines for data breaches.
- The crypto mining sector of Russia is not directly under international sanctions, but some firms have still been embroiled in a disagreement.
Russian Bitcoin miners are concerned about a new government registry that is taking up sensitive data consisting of crypto wallet addresses, under new regulations. A policymaker from Russia looking over information policy stated that “If disclosed, it could be a big gift to geopolitical opponents.
The crypto miner registry in Russia has been skyrocketing and operating since last November. Users of the nation can register through the available service on Russia’s Federal Tax Service. The head of the tax agency, Daniil Yegorov revealed that around 150 miners submitted the request to the registry in the first three weeks of the registry’s operation.
Assurance of data safety
On February 7, Anton Gorelkin revealed through a Telegram post that Russian crypto miners are now concerned about the registry, scared of the data disclosure. They believe that it could expose sensitive information and result in sanctions.
The tax agency gave reassurance that the data is kept in a different internal protected system with Gorklin mentioning that not everyone even inside the agency can access that and that external access is practically not possible.
He further went on to state that cybersecurity experts like to echo the mantra that everything that can leak, will ultimately leak. The Federal Tax Service says that the danger of sensitive information leaking or disclosing from its internal systems has now been cut down to zero.
Last year, the communications overseer of Russia, Roskomnadzor who banned YouTube, Discord, and Viber amid hundreds of other VPN services listed 135 data leaks, having more than 710 million records of Russians leaking online.
Increased fines for data breaches
A surge in leaks came as firms witnessed reduced fines. However, by the end of last year, the Russian State Duma accepted a bill increasing fines for data breaches. Before the alterations, firms could only be fined up to 100,000 rubles which is about $1,000.
But now, after the update surfaced, the maximum fines went up by 150-fold and is now 15 million rubles which is about $150,000. The crypto mining sector of Russia is not directly under international sanctions, but some firms have still been embroiled in a disagreement.
In April 2022, the Department of the Treasury’s Office of Foreign Assets Control of the United States permitted BitRiver AG, a Switzerland-based holding firm with operations in Russia, which was the first time ever in history that a crypto-mining firm was targeted.
In March last year, OFAC stroked 13 Russian bodies consisting of fintech companies such as B-Crypto, Masterchain, Laitkhaus, and Atomaiz, for aiding to elude sanctions through crypto services.
