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A prominent Russian official asserts that authorities should be empowered to confiscate coins from illegal or semi-legal Bitcoin miners.
The state-owned news agency TASS reported that these remarks were made by 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.
This chamber serves as a policy advisory entity that provides guidance to the government and legislators regarding legislative initiatives.
Illegal Miners May Forfeit Their Coins Under New Proposals
Masharov stated that his suggestion aims to deter “grey” miners by “rendering illegal mining unprofitable.”
The Russian Public Chamber. (Source: @oprf_official/Telegram)
New Russian regulations enacted last year mandate that all miners consuming over 6,000 kWh monthly must register their operations with the Federal Tax Service.
However, there are concerns that numerous miners are opting not to comply due to their reluctance to pay taxes on their income.
This issue is particularly prevalent in several of Russia’s established Bitcoin mining regions, such as the Irkutsk Oblast.
These locations have reported that illegal miners are exerting significant pressure on their energy infrastructures.
Regions in Russia, “especially those facing energy shortages, will find relief” if the proposal is approved, Masharov remarked.
Masharov indicated that his proposal could be incorporated into a bill that permits law enforcement and judicial authorities to confiscate cryptocurrency in criminal cases.
This bill has already undergone a first reading in the State Duma and has since returned to Duma committees for amendments prior to a second reading. Masharov stated:
“This measure would enhance our oversight of crypto miners’ operations. We advocate for the compulsory confiscation of cryptoassets, irrespective of the organizational and legal structure of the entity involved, from miners not listed in the register.”
Yevgeny Masharov, a member of the commission of the Public Chamber of the Russian Federation. (Source: Russian Public Chamber/RuTube)
Increase in Illegal Mining
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Recently, the Ministry of Energy, the Federal Antimonopoly Service, and law enforcement agencies have all indicated that several companies continue to mine cryptocurrency unlawfully.
Masharov asserted that many of the miners involved are well-organized, although a significant number are not officially registered as Russian enterprises.
Under current legislation, Russian courts can only impose fines on illegal crypto miners if they are found to be stealing electricity from power grids or misusing subsidized energy.
Bailiffs are also authorized to seize mining rigs and other equipment. However, courts presently lack the authority to confiscate coins from miners. Masharov elaborated:
“Seizing illegal earnings from unlawful miners will compel them to either cease their operations or register. They will need to enter the legal market.”
The official noted that to implement his proposal, lawmakers would need to include a provision designating illegal miners’ cryptocurrency holdings as a type of intangible property.
The UK sanctioned a trading unit of Russia’s largest private oil producer Lukoil PJSC as part of over 100 measures targeting Moscow’s exports https://t.co/9ohbbxTj52
— Bloomberg (@business) July 21, 2025
Potential Russian Crypto Fund?
Masharov is regarded as one of the most significant figures in the Russian government concerning cryptocurrency policy.
In March of this year, he urged the government to establish a crypto fund consisting of coins confiscated in criminal cases.
Masharov stated that cryptoassets seized during criminal proceedings “should be utilized for the benefit of the state.”
He suggested that the fund could have a strategic purpose, using these assets to provide public services. Masharov remarked that the existing framework for confiscating cryptocurrency from criminals is inadequate and overly restrictive.
Peace talks between Ukraine and Russia are scheduled for Wednesday in Turkey, as quoted by Ukrainian President Volodymyr Zelenskiy from a senior Kyiv official. This would mark the first such discussions in seven weeks https://t.co/PB9cvLVtMC pic.twitter.com/yrSvMBDALQ
— Reuters (@Reuters) July 22, 2025
Approximately 90% of Russian industrial crypto miners concentrate their efforts on Bitcoin (BTC), according to domestic industry leaders.
Some of the nation’s top crypto industry representatives have expressed optimistic views regarding BTC in recent weeks.
A few believe that the coin could reach a new all-time high of $150k before the summer concludes this year. However, many have cautioned about a potential temporary slowdown in the upcoming weeks.
The post Russian Policymaker Says State Should Seize Crypto From Illegal Miners appeared first on Cryptonews.
