The revised Russian Encrypted Mining Act recommends that miners who evade taxes be imprisoned with a maximum term of 4 years

It is reported that the legislator of an encryption mining bill aimed at regulating the continuous development of Russia now plans to resubmit it and consider amendments that will cause serious consequences to miners who do not comply with the rules. According to the amendment to the criminal law formulated by the department, if the miners fail to report their income twice within three years and the value exceeds 15 million rubles (nearly 200000 dollars), they will face up to two years’ imprisonment, a maximum fine of 300000 rubles, and even up to two years’ forced labor.

Interpretation of this information:

The Russian government continues to focus on regulating the fast-developing cryptocurrency industry. The latest move is an amendment to the criminal law that targets miners who fail to report their income. The bill intends to impose severe consequences on miners who do not comply with the proposed regulation. The amendment will require that miners report their income twice every three years, and any income over 15 million rubles left unreported will result in a prison sentence of up to two years, a maximum fine of 300000 rubles, and even up to two years’ forced labor.

The government’s aim is to bring transparency and accountability to the cryptocurrency market. Currently, the industry is mostly unregulated, and this has led to cases of illegal activities such as money laundering and tax evasion. By imposing these strict regulations, the Russian government hopes to curb these issues and make the industry safer.

However, the move has received backlash from the cryptocurrency industry, with many arguing that it will stifle innovation and harm small-scale miners. Since crypto mining is a decentralized industry, it is not easy to track the income of every miner. This could lead to many miners inadvertently committing a crime. Furthermore, the penalties proposed are considered excessive and could lead to an exodus of miners from the country.

In summary, the Russian government continues to prioritize the regulation of the cryptocurrency industry. The latest move is an amendment to the criminal law that targets miners who fail to report their income. The penalties proposed are severe and could lead to unintended consequences, such as stifling innovation and driving miners out of the country.