Russia Moves to Criminalize Illegal Cryptocurrency Mining

Source: DefiPlanet Original Title: Russia Moves to Criminalize Illegal Cryptocurrency Mining Original Link:

Quick Breakdown

• Illegal cryptocurrency mining could result in fines up to 1.5M rubles or two years of forced labour.
• Organized groups or high-income offenders may face up to 5 years in prison.
• Registered miners must report monthly mining activities to the Federal Tax Service.

The Russian Ministry of Justice has proposed criminal penalties for unregistered cryptocurrency mining, signalling a tougher stance on illegal digital asset operations.

New penalties for unauthorized miners

The proposed amendments to the Criminal and Criminal Procedure Codes introduce Article 171.6, which targets unauthorized mining and operators of unregistered mining infrastructure. Individuals conducting mining activities without registration could face fines of up to 1.5 million rubles or up to 20 years of forced labour. In cases where the activity generates substantial income or is conducted as part of an organized group, penalties may include imprisonment for up to 5 years.

The law defines substantial income as earnings exceeding 13.5 million rubles, and large-scale income as earnings exceeding 3.5 million rubles. Penalties for organized groups or offences causing significant financial damage include fines ranging from 500,000 to 2.5 million rubles, forced labour for up to 5 years, or imprisonment with supplementary fines. These measures aim to prevent illegal operations from harming individuals, organizations, or the state, while deterring unauthorised cryptocurrency activity.

Compliance measures and legal framework

The proposed criminal penalties build on the cryptocurrency mining law, which came into effect on November 1, 2024, and legalized mining in Russia and established mandatory registration with the Federal Tax Service (FNS) for legal entities, individuals, and infrastructure operators. According to FNS data, over 1,000 miners had registered by May 2025. All registered miners are required to report mined digital assets monthly through the FNS online portal to ensure transparency and compliance.

Deputy Prime Minister Alexander Novak highlighted that 2026 will see the enforcement of criminal liability for illegal miners and unlicensed lenders, reinforcing regulatory oversight within Russia’s cryptocurrency sector. The move reflects the government’s intent to strengthen investor protection, ensure operational transparency, and maintain the stability of the national digital asset ecosystem. Lawmakers reiterated that Bitcoin, Ethereum, and other cryptocurrencies will remain prohibited for everyday payments, keeping the country’s long-standing ban on digital assets as a means of exchange.