Russia Targets Illegal Crypto Mining with Harsh Penalties

Highlights:

• Russia is proposing up to five years’ imprisonment for illegal crypto mining.
• Fines of up to 2.5 million rubles will be imposed on unregistered crypto miners.
• A new Criminal Code article has been directed at organized and large-scale illegal mining activities.

The Russian Ministry of Justice has introduced a new bill that seeks to combat illegal crypto mining. The proposed amendment adds to Article 171.6 in the Criminal Code, outlining penalties in the case of mining without registration. Authorities can impose fines of up to 1.5 million rubles. In other instances, up to two years of forced labor could be applied.

Tougher sanctions are expected to be faced by coordinated groups or large-profit operations. Those convicted might serve up to five years of imprisonment. The law considers “large scale” as profits of up to 3.5 million rubles or more. The crime is classified as an “especially large-scale” one when it is above 13.5 million rubles.

In these instances, the fine can range from 500,000 to 2.5 million rubles. Courts can also impose jail sentences alongside income-based penalties. The draft bill is available on Russia’s official legal portal for public feedback.

Registry System and Government Oversight

On November 1, 2024, crypto mining was officially legalized in Russia. On the same day, the Federal Tax Service introduced registries of miners. These included legal entities, individuals, and infrastructure operators. In addition, registered miners should report mined currency at the end of every month. They use a special section in their tax account for this purpose. By May 2025, according to the Tax Service, more than 1,000 miners were registered in the registry.

In July 2025, the Ministry of Energy also established a registry to monitor mining equipment. This tool was designed by the officials with the assistance of the Federal Tax Service, seeking to track areas that have high crypto activity. Deputy Energy Minister Petr Konyushenko clarified that the objective was to locate the illegal miners. The system also provides adherence to the regulations of the country. 

Meanwhile, the future penalties were confirmed by the Deputy Prime Minister Alexander Novak. In early December, he said that criminal liability for illegal crypto mining will commence in 2026. This comprises the miners and unlawful lenders, aiming to curb energy abuse and tax evasion.

Crackdown Backed by Broader Enforcement

Implementation has already stepped up throughout Russia. In October, police raided a mining farm in St. Petersburg. The facility had been running illegally since 2018. The police confiscated more than 2,700 mining rigs in the exercise. The investigation was initiated by the Ministry of Internal Affairs after noticing power anomalies. The abnormal power consumption pointed to illegal crypto mining, leading to investigators acting fast to stop the illegal operation.

The Russian government has also clarified its stance on crypto payments. According to the authorities, the ruble is the only legal currency of payment. They also reiterated that transactions cannot be made using digital currencies.

Even though digital asset trading and investing are permitted, domestic payments are required to remain in rubles. These measures have been supported by lawmakers such as Anatoly Aksakov. They further claim that these regulations safeguard the economy and public interest.