According to Russia’s Supreme Court, the number of crimes involving cryptography has increased.
Irina PODNOSOVA, President of the Russian Supreme Court at a recent gathering attended by Vladimir Putin, claimed that digital assets play an increasing role in criminal acts across the nation.
“With the spread of cryptocurrency in the economy, there has been a rise in crimes where the digital currency is either the means of committing the crime, the criminal income, or the object of the offense,” Podnosova made the statement at an annual meeting of judges from general jurisdiction tribunals, arbitral and military tribunals.
The Supreme Court, according to reports is working on a legislation initiative which would allow cryptos to be recognized as property for criminal prosecutions.
Russia’s economy is still suffering from the effects of the illegal mining of crypto currencies, which has continued to affect the energy sector.
The Russian news agency, State-owned News Agency, reported that Rosseti Group, a Russian power company Rosseti Group, revealed that illegal mining has caused damages of over $14 million to the electricity grid by 2024. TASS Recently reported
Mining operations in the North Caucasus and Novosibirsk are causing the most damage to industrial and household appliances and equipment.
Russian authorities have banned mining in certain regions for a limited time, and these restrictions will last up to 2031.
The proposed national mining equipment registry, along with these measures, aims to stop the proliferation of illegal mining operations.
The authorities may also consider imposing harsher sanctions, such as criminal charges or fines to discourage offenders and safeguard critical infrastructure.
Russia and Crypto
Despite its crackdown on illicit crypto activities, Russia's complex relationship with crypto is becoming more evident.
The country has tightened regulations in order to fight internal crypto-crime, but it is also embracing the technology to avoid Western sanctions.
According to a recent report by blockchain analytics platform Chainalysis, Russia's illicit crypto activities continue to thrive as new non-compliant exchanges rapidly emerge to replace those shut down by authorities.