Russia plans to introduce "criminal liability" for cryptocurrency mining! Unregistered miners face up to 5 years in prison and a fine of 2.5 million rubles

The Russian Ministry of Justice recently published a draft bill on the Federal Legislation Drafts Portal, proposing to introduce criminal liability for unregistered cryptocurrency miners, with a maximum sentence of 5 years imprisonment in certain serious cases.
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The Russian Ministry of Justice recently published a draft bill on the Federal Legislation Drafts Portal, proposing to introduce criminal liability for unregistered cryptocurrency miners, with a maximum sentence of 5 years imprisonment in certain serious cases. This move marks an escalation in Russia’s regulation of the crypto mining industry from administrative penalties to criminal measures, aiming to combat issues such as “gray mining,” electricity theft, and tax revenue loss.

Specific details of the new proposal

The draft plans to add Article 171.6 to the Criminal Code of the Russian Federation, titled “Illegal digital currency mining and operation of mining infrastructure activities.” Basic violations (such as unregistered mining, causing significant damage, or illegal income exceeding 3.5 million rubles, about $44,000) could result in fines up to 1.5 million rubles (about $19,000), forced labor for up to 2 years, or compulsory labor for up to 480 hours.

Aggravating circumstances (such as illegal income exceeding 13.5 million rubles, causing major damage, or carried out by organized groups) could lead to fines ranging from 500,000 to 2.5 million rubles, forced labor for up to 5 years, or imprisonment for up to 5 years (possibly with additional fines).

The draft emphasizes that these penalties target individuals or entities not listed in the Federal Tax Service’s registry of miners. If passed, it is expected to take effect in 2026. The draft is currently in the public discussion stage and must be reviewed by the State Duma (lower house of parliament) and signed by the president before becoming law.

Background of the proposal and current regulations

Russia officially legalized cryptocurrency mining on November 1, 2024, but with strict conditions. Legal entities and individual entrepreneurs must register in the Federal Tax Service’s dedicated registry; ordinary individuals can mine on a small scale without registration if their monthly electricity consumption does not exceed the government-set limit (about 6,000 kWh). Additionally, all miners are required to report the amount of digital currency mined and related addresses to the tax authorities each month.

By mid-2025, over 1,000 miners had completed registration, but official estimates suggest most miners remain non-compliant. Illegal mining is often accompanied by electricity theft, grid overloads, and tax revenue losses, especially in energy-rich regions like Siberia. The Ministry of Justice’s draft reflects this direction, indicating that while the government seeks to develop the mining industry leveraging low electricity prices, it also aims to strengthen energy security and fiscal revenue protection.