A Russian lawmaker said that cryptocurrency miners who illegally connect devices to the grid should go to jail, and he recently announced that his nationalist party is drafting legislation to regulate cryptocurrency activities. Another senior MP added that the industry cannot rely on state support.

Unauthorized use of electricity can put miners in trouble

The issue of regulating cryptocurrency mining is imminent in Russia, and legislators have been actively discussing this topic. Andrey Lugovoy, a member of the State Duma in the House of Commons, threatened that if miners connect their hardware to the grid without official permission, they will face jail.

The deputy pointed out that if mining is to be legalized, miners should turn to their respective utility companies before starting the equipment. He explained that if they were denied access but still connected to the distribution network, they would violate the administrative law and criminal code of the Russian Federation.

Lugovoi disclose In November, his nationalist faction, the Russian Liberal Democratic Party, is preparing to issue a draft law to regulate cryptocurrency mining. Legislators insisted that the passage of the legislation would benefit Russian citizens, the country itself, and entrepreneurs who wish to legally participate in business.

In an interview with the Russian online news portal Lenta.ru, he now adds that it makes sense to regulate mining. In addition to imposing differential electricity prices on mining companies, the representative believes that their profits should be taxed after deducting other expenses such as energy costs and labor. Lugovoy accused miners of using cheap, subsidized electricity without paying taxes.

Cryptocurrency mining is considered “meaningless”

Bitcoin miners should not expect government support because their activities “have no social significance.” This is based on a statement issued by Anatoly Aksakov, Chairman of the Parliament’s Financial Market Committee, who also commented on the matter.This senior lawmaker is supporter Regulate mining as a corporate activity and its taxation.

Aksakov announced that the Duma will hold its first meeting. working team Regarding cryptocurrency regulation in December. It will first review a special report prepared by the Central Bank of Russia (Community rehabilitation) And its members will focus on expanding the legal framework of cryptocurrencies. Earlier this year, Russia’s “Digital Financial Assets Law” only regulated some encryption-related activities, and mining was not one of them.

According to a recent report, energy-rich Russia has become a major destination for mining companies amid China’s continued attack on Bitcoin mining, receiving a large number of Chinese mining machines during the outflow of miners this year. ReportMembers of the crypto industry believe that appropriate regulation can help the country become a leader in the industry.However, the authorities in such areas IrkutskSome companies with the lowest electricity prices in the country complain that excessive consumption by illegal miners is causing power shortages.

Do you think Russia will regulate cryptocurrency mining in the near future? Share your expectations in the comments section below.

Lubomir Tasef

Lubomir Tassev is a tech-savvy journalist from Eastern Europe. He likes Hitchens’ famous quote: “Being a writer is my nature, not what I do.” In addition to encryption, blockchain and financial technology, international politics and economics Are the other two sources of inspiration.