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Tim Alper
Author
Tim Alper
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A leading Russian policymaker says authorities should be given the power to seize coins from illegal or quasi-legal Bitcoin miners.
The Russian state-run news outlet TASS reported that the comments came from Yevgeny Masharov, a member of the commission of the Public Chamber of the Russian Federation for the Public Examination of Draft Laws and Other Regulatory Acts.
The chamber is a policy-forming body that advises the government and lawmakers on legislative proposals.
Illegal Miners Could Lose Their Coins Under New Proposals
Masharov claimed that his proposal would discourage “grey” miners by “making illegal mining unprofitable.”
Russian laws introduced last year require all miners using more than 6,000 kWh per month to register their activities with the Federal Tax Service.
However, some are concerned that many miners are choosing not to comply as they do not want to pay tax on their earnings.
This is a particular problem in many of Russia’s traditional Bitcoin mining hotspots, such as the Irkutsk Oblast.
These areas have complained that illegal miners are placing a high strain on their energy grids.
Russian regions, “especially those experiencing energy shortages, will breathe a sigh of relief” if the proposal is accepted, Masharov said.
Masharov said that his proposal could be added to a bill that allows police and courts to seize crypto in criminal cases.
The bill in question has already passed the State Duma in a first reading. It has since returned to Duma committees, who will amend the bill ahead of a second reading. Masharov said:
“This measure would strengthen our control over crypto miners’ activities. We propose the mandatory confiscation of cryptoassets, regardless of the organizational and legal structure of the company in question, from miners not included on the register.”
A Rise In Illegal Mining
In recent weeks, the Ministry of Energy, the Federal Antimonopoly Service, and law enforcement agencies have all reported that several firms are still mining crypto illegally.
Masharov claimed that many of the miners in question are highly organized, although many are not officially registered as Russian businesses.
Under existing laws, Russian courts only have the power to fine illegal crypto miners if they steal electricity from grids or make illegal use of subsidized power.
Bailiffs also have the power to confiscate mining rigs and other equipment. But courts currently have no power to confiscate coins from miners. Masharov explained:
“Confiscating illegal profits from illegal miners will force them to either stop their activities or sign up to the register. They will have to join the legal sector.”
The policymaker said that in order to enact his proposal, lawmakers would need to add a clause stipulating that illegal miners’ crypto holdings are a form of intangible property.
Russian Crypto Fund Incoming?
Masharov is one of the most influential voices in the Russian government on crypto-related policy.
In March this year, he called on the government to create a crypto fund comprising coins seized in criminal cases.
Masharov said that cryptoassets confiscated during the course of criminal proceedings “must be put to work to the benefit of the state.”
He said that the fun could have a strategic aspect, using them to provide public services. Masharov said that the current system for seizing crypto from criminals was incomplete and restrictive.
Around 90% of Russian industrial crypto miners focus their efforts on Bitcoin (BTC), domestic industry chiefs believe.
Some of the country’s top crypto industry officials have expressed bullish sentiments about BTC in recent weeks.
A few think that the coin could hit a new all-time high of $150k before the end of summer this year. But many have warned of a temporary lull in the weeks ahead.
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