Catenaa, Sunday, January 04, 2025- Russia’s Ministry of Justice has proposed prison sentences and steep fines for illegal cryptocurrency mining as the government tightens enforcement of rules introduced after the sector was legalized.
Draft amendments to the Criminal Code would make unregistered crypto mining a criminal offense, with penalties reaching up to five years in prison for large-scale or organized operations. The proposal targets miners operating outside a federal registry overseen by the Federal Tax Service, which took effect Nov. 1, 2024.
Under a new article introduced in the draft law, individual miners who cause major damage or earn more than 3.5 million rubles could face fines of up to 1.5 million rubles, compulsory labor of up to 480 hours, or forced labor for as long as two years. Harsher penalties would apply to organized groups or operations generating more than 13.5 million rubles.
For those cases, the proposed sanctions include fines ranging from 500,000 to 2.5 million rubles, forced labor for up to five years, or imprisonment for up to five years, with additional fines of as much as 400,000 rubles.
The proposal follows repeated warnings from officials that illegal mining continues to strain power grids and drain tax revenues despite legalization. Russia requires registered miners to report monthly earnings and pay taxes, with more than 1,000 entities enrolled as of mid-2025. Small household miners using limited electricity remain exempt.
Authorities say illegal operations remain widespread. Investigations across several regions have uncovered large, concealed mining farms tied to electricity theft, bribery and unreported income. Power companies report millions of kilowatt-hours lost to unauthorized mining in 2025 alone.
Officials say criminal penalties are needed to curb abuses, protect infrastructure and bring the industry fully into the regulated economy.
