Russia Proposes Jail Terms, Heavy Fines for Illegal Crypto Mining

Key Insights

• Russia proposes up to 1.5 million rubles in fines for illegal crypto mining.
• Five-year prison sentences proposed for organized mining groups.
• Criminal penalties target unregistered miners operating since Nov 2024.

Russia’s Ministry of Justice has proposed criminal penalties for illegal crypto mining. This includes fines up to 1.5 million rubles or two years of forced labor.

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The draft amendments posted on Russia’s official legal portal target miners operating without proper registration. Organized groups generating especially large profits could face up to five years in prison under the proposed framework.

Russia’s Ministry of Justice Drafts Criminal Penalties

Russia’s Ministry of Justice released draft amendments to the Criminal Code and Criminal Procedure Code proposing the introduction of Article 171.6. It would address illegal digital currency mining and the operation of unlicensed mining infrastructure.

The proposed article targets individuals conducting digital currency mining. It excludes those not listed in Russia’s official register of cryptocurrency miners.

The basic penalty structure included fines up to 1.5 million rubles. It imposed compulsory labor for up to 480 hours. It allowed forced labor for up to two years.

These penalties apply when illegal crypto mining causes significant damage to citizens, organizations, or the state. The threshold for prosecution includes the generation of income on a large scale, defined as 3.5 million rubles.

The draft amendments specify that liability arises only when actions meet these financial thresholds or damage criteria. Russia designed the penalties to target operators conducting substantial mining operations outside the regulatory framework while causing measurable harm.

Enhanced Penalties for Organized Crypto Mining Groups

Part two of the proposed article establishes improved penalties for aggravated circumstances. Organized groups conducting illegal crypto mining face fines ranging from 500,000 to 2.5 million rubles.

Alternative sentences included forced labor for up to five years. They also allowed imprisonment for up to five years with an additional fine of 400,000 rubles. The penalties applied when illegal mining caused large‑scale damage. They also applied when income exceeded 13.5 million rubles.

Russia can impose fines equivalent to the convicted person’s salary or other income for periods ranging from one to three years.

The 13.5 million ruble threshold triggered enhanced penalties. It was nearly four times higher than the 3.5 million ruble threshold for basic prosecution. Russia structured these penalties to target large-scale commercial operations rather than individual miners.

Russia Enforces Mining Registration Since November 2024

The law legalizing crypto mining in Russia came into force on November 1, 2024. The Federal Tax Service launched special registries on the same day. They covered all legal entities and individual entrepreneurs involved in crypto mining.

The Federal Tax Service reported over 1,000 participants in the registries as of the end of May 2025. All registered miners must report their mined digital currency monthly. The rule covers legal entities.

It also covers individuals. They file reports through a special section in their personal accounts on the Federal Tax Service website. Russia established these reporting requirements to maintain oversight of the crypto mining sector.

The registration system covers both miners and operators of mining infrastructure. Russia designed the dual registry to track the entire ecosystem of cryptocurrency production within its borders.

Russia Plans 2026 Implementation Timeline

Deputy Prime Minister Alexander Novak announced the plan in early December. The Russian government will introduce criminal liability for illegal mining in 2026.

The announcement preceded the Ministry of Justice’s formal publication of the draft amendments. Novak stated the government would also introduce penalties for illegal lenders during the same implementation period.

The timeline aligns with Russia’s broader cryptocurrency regulatory framework unveiled by the Central Bank in December 2025.

The framework established comprehensive rules for cryptocurrency trading and institutional involvement. Legislative finalization was set for July 1, 2026, with full implementation by July 1, 2027.

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