A Russian policymaker has proposed that the state should confiscate cryptocurrency from illegal miners.
According to a prominent Russian policymaker, authorities should be granted the authority to confiscate coins from Bitcoin miners who operate illegally or in a quasi-legal capacity.
Yevgeny Masharov, a member of the Public Chamber of the Russian Federation’s commission for the public examination of draft laws and other regulatory acts, was the source of the comments, according to the Russian state-run news outlet TASS.
The chamber is a policy-forming body that guides the government and legislators regarding legislative proposals.
New proposals may result in the confiscation of coins from illegal miners.
Masharov asserted that his proposal would discourage “grey” miners by rendering illicit mining unprofitable.
Last year, Russian legislation mandated that all miners who consume more than 6,000 kWh of electricity per month register their operations with the Federal Tax Service.
Nevertheless, some are apprehensive that a significant number of miners opt not to comply with the regulations due to their reluctance to pay earnings tax.
This issue is in numerous traditional Bitcoin mining locations in Russia, including the Irkutsk Oblast.
According to complaints, these regions’ energy infrastructures are significantly burdened by illegal miners.
Masharov stated that the proposal’s acceptance would provide respite to Russian regions, particularly those experiencing energy shortages.
Masharov suggested that his proposition could be incorporated into a bill that authorizes law enforcement and courts to seize cryptocurrency in criminal cases.
The State Duma approved the measure in question during its initial reading. It has since been returned to the Duma committees, who will amend the measure before its second reading. Masharov stated:
“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.”
An Increase in Illegal Mining
The Ministry of Energy, the Federal Antimonopoly Service, and law enforcement agencies have reported recently that numerous firms are still unlawfully mining crypto.
Masharov alleged that many of the miners in question are highly organized, even though many are not officially registered as Russian enterprises.
Russian courts are only authorized to impose fines on illegal crypto miners who steal electricity from grids or use subsidized power unlawfully under current legislation.
Bailiffs are also authorized to seize mining trucks and other equipment. However, courts are presently unable to seize coins from miners. Masharov elaborated:
“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 stated that to implement his proposal, legislators would need to include a clause that explicitly states that the crypto holdings of illegal miners are a form of intangible property.
Russian Crypto Fund Incoming?
Regarding crypto-related policy, Masharov is one of the most influential advocates in the Russian government.
He urged the government to establish a crypto fund including cryptocurrencies confiscated in criminal investigations in March of this year.
Masharov stated that cryptoassets confiscated during criminal proceedings “must be utilized for the state’s benefit.”
He stated that the enjoyment could be strategically utilized to deliver public services. Masharov asserted that the existing mechanism for confiscating cryptocurrency from criminals was inadequate and restrictive.
According to domestic industry leaders, approximately 90% of Russian industrial crypto miners concentrate on Bitcoin (BTC).
In recent weeks, several of the nation’s most prominent crypto industry officials have expressed optimistic views regarding Bitcoin (BTC).
A few individuals believe the coin could reach a new all-time high of $150k before the end of the summer this year. However, numerous individuals have cautioned that there may be a brief respite in the weeks ahead.
