According to a new official notification, Russian cryptocurrency miners have been told to record their profits or risk harsh penalties. Miners are required to report their earnings as well as transactional details like wallet addresses. The specific sentence, if proven guilty, varies based on the amount of money made.
The penalty for failing to declare income of about $200,000 twice in three years is up to two years in prison and up to two years of forced labour. Individuals with incomes over $600,000 risk up to four years in prison and four years of forced labour.
A forthcoming regulatory framework for the asset class is also mentioned in the notification. It is anticipated that Russia would establish a register of cryptocurrency exchanges. If crypto entities don’t abide by the framework, they could spend up to seven years in prison.
In recent years, Russia has taken a very severe stance on the cryptocurrency mining business. The nation has been making an effort to regulate the sector, and new rules are being put into effect to make sure that miners register their gains or face legal repercussions.
Along with the recent warning that miners must record their profits or risk jail time, the Russian central bank has been strictly policing cryptocurrency exchanges. The bank has stated categorically that it opposes using cryptocurrency as a form of payment and has even gone so far as to call them “pyramid schemes.”
The Russian cryptocurrency market has been impacted by the ongoing conflict in Ukraine. Some Russians have turned to cryptocurrencies as a means of getting over the economic sanctions that Western nations have placed on their country. The nation’s central bank has cautioned against using cryptocurrencies for these objectives, noting that doing so could cause more economic turmoil.
Ultimately, things for Russian cryptocurrency miners are still a little hazy. The government has supported the industry in some ways, but it has also imposed tough restrictions and issued a warning against the use of cryptocurrencies for illicit purposes. The business has also been impacted by the ongoing conflict in Ukraine and the sanctions imposed on Russia, with some resorting to cryptocurrencies as a way to get around these limitations.