A New Blow From Russia To Crypto Miners?
The Russian Ministry of Finance has drafted a new bill that reminds of the previous cryptocurrency ban attempts and, if approved, will have a huge impact on the country’s cryptocurrency miners.In the document sent by the ministry to other government units, it is stated that miners in Russia who use Russia-based infrastructure may not be rewarded for their work in cryptocurrency.The draft aims to amend a new law on digital assets signed by Russian President Vladimir Putin at the end of July.
Impact for Miners
Igor Runets, CEO of BitRiver, one of Russia’s largest mining farms, says if the bill becomes law, miners can push them out of legal operations. “They receive cryptocurrency as a reward for recording transactions on the blockchain, and that is becoming illegal,” Runets said.
Runets suggested that one way to circumvent this problem might be to establish a miner or a foreign entity to run the mining farm’s finances. However, the process is not cheap and will not be an option for small miners who cannot afford the legal costs.With this bill, it would be illegal to accept digital assets as a payment for such work.
How Will Mining Pools in Russia Be Affected?
The new rules could affect facilities in Russia that house customers’ mining devices and receive payments in cryptocurrency for the electricity and services they provide.According to Jakhon Khabilov, head of the Sigmapool mining pool, currently only smaller mining farms in Russia accept cryptocurrency as payment; larger ones are paid in fiat currency via wire transfers.
The bill includes provisions from an earlier draft that were brought to the Russian parliament but did not come into effect as a result of public protest. In both drafts, Russian citizens only inherited; He notes that they can own crypto assets if they take them as borrowers of a bankrupt company or take them as compensation after winning a lawsuit.
The new draft also proposes a fine of up to 1 million Russian rubles (about $ 13,240) or up to seven years in prison for the illegal extraction and use of cryptocurrency and its acceptance as a means of payment.