Bitcoin mining to face zero profit law in Russia

According to information from local media, the Ministry of Finance of the Russian Federation wants to implement a very peculiar amendment. The amendment would be aimed at reforming the law regulating Bitcoin mining, which would confront Bitcoin with an unprecedented dilemma.

The amendment is already being considered by the interdepartmental chamber of the Eurasian nation. This proposal from the finance ministry would be aimed at prohibiting Bitcoin miners from receiving rewards in the currency they mine.

The more extensive information explains that the same law would apply to other digital currencies such as Ethereum. It’s an unusual move in which it’s not forbidden to mine Bitcoin, but to receive them after mining them.

Bitcoin mining can’t be separated from the rewards at BTC

An important aspect of this business of extracting crypto-currencies is precisely that the rewards received, correspond to the mined coin. In this sense, it is not yet clear how the authorities of the Kremlin would put this law into practice.

This leaves the farm owners, who do not know how Bitcoin mining would deal with this change in the digital coinage law, in expectation. On the other hand, there are some exceptions to this „Financial Assets Law“.

Half of Izvestia, explains that there are three „acceptable“ ways to receive crypto coins, in case the amendment is approved. The first is by inheritance, receipt of assets if bankruptcy and enforcement proceedings are involved.

Out of these exceptions, any procedure that means receiving cryptomoney, will be considered illegal. In other words, any Russian citizen or business that trades with Bitcoin and Ethereum, will be sanctioned for violating the law.

Russian citizen tried to pay with Bitcoin to hack into company

Heavy penalties
Violation of this law, if it happens, could result in large fines and even jail time. For example, if a Bitcoin mining farm, concretizes the mining of a block, it would face the consequences of the law.

Fines for receiving payments in cryptosystems are about 100,000 rubles, which is equivalent to $1,325 US dollars. As for prison measures, they could face sentences of up to seven years in jail.

On the other hand, when the receipt of cryptomonies involves companies or any kind of business, the penalties are higher. In this case, the fines could amount to 1,000,000 rubles or $13,250 USD.

Some specialists in the Russian nation’s laws explain that this is a law that deserves a thorough revision. This is because it would almost totally and absolutely prohibit the circulation of crypto-currencies within the geographical territory of the Russian Federation.