Russia Tightens Crypto Rules: Illegal Mining Could Cost You Millions and Jail Time

The Russian Ministry of Justice has unveiled draft amendments to the country’s Criminal Code and Criminal Procedure Code aimed at penalizing illegal cryptocurrency mining.

Under the proposed rules, individuals caught mining without registration could face fines of up to 1.5 million rubles or up to 480 hours of compulsory labor. In more serious cases, offenders may be subjected to forced labor for up to two years.

The amendments also establish punishment for individuals carrying out operations that generate a lot of profits or are involved in organized groups.

For instance, if an individual carries out an operation that generates a lot of profit or is involved in an organized group, the maximum term of punishment goes up to five years.

Fines can go from 500,000 to 2.5 million roubles or be calculated equal to a person’s income for one to three years. The new rule, Article 171.6, titled “Illegal mining of digital currency and activities of a mining infrastructure operator,” was included in the Criminal Code.

According to the text, a crime can be considered if it damages citizens, an organization, and/or the state, as well as if it yields over 3.5 million rubles. But if the crime involves organized crime and large earnings (in excess of 13.5 million rubles), then punishments are severe.

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Legal Mining in Russia and Registration Requirements

Cryptocurrency mining is legal in Russia as of November 1, 2024. On that day, the Federal Tax Service opened registers for all cryptocurrency miners in the form of legal entities and individuals, as well as infrastructure operators.

It is obligatory to be in these registers, and all miners must declare their production of digital currencies every month using a special page of the Federal Tax Service website.

At the end of May 2025, the number of participants in the registries was over 1,000. The program is intended to legitimize mining, enhance tax compliance, and halt any irregular practices.

It has also been noted by analysts that this registry allows the government to monitor the use of energy as well as the effects of mining.

Russia to Impose Criminal Liability on Unlicensed Crypto Activities

According to Deputy Prime Minister Alexander Novak, Russia is going to develop criminal laws not only on stealing digital money but also on providing crypto loans without permission.

This is going to happen in 2026. This is part of Russia’s strategy on how to regulate the rapidly developing market of digital money.

It is believed that with the implementation of these rules, small miners who were not registered would be forced to register because it would be difficult for illegal miners to operate in the market. The punishment scheme illustrates the toughest regulatory framework governing cryptocurrency mining globally.

Also Read: Arizona Files New Legislation to Remove Crypto From State and Local Taxes