The Russian Ministry of Justice recently published a draft bill on its federal law draft portal, proposing to introduce criminal liability for unregistered cryptocurrency miners, with a maximum penalty of five years imprisonment in certain serious cases. This move signifies a further escalation of Russia's regulation of the cryptocurrency mining industry from administrative penalties to the criminal level, aiming to combat issues such as "gray mining," electricity theft, and tax evasion.
Specific details of the new proposal
The draft law proposes adding Article 171.6 to the Criminal Code of the Russian Federation, titled "Illegal Mining of Digital Currencies and Activities of Mining Infrastructure Operators." For basic violations (such as unregistered mining, causing significant damage, or illegal income exceeding 3.5 million rubles, approximately US$44,000), fines could reach up to 1.5 million rubles (approximately US$19,000), up to two years of forced labor, or up to 480 hours of community service.
For aggravated offenses (such as illegal income exceeding 13.5 million rubles, causing significant damage, or being committed by an organized group), the penalty is a fine of 500,000 to 2.5 million rubles, forced labor for up to 5 years, or imprisonment for up to 5 years (with possible additional fines).
The draft emphasizes that these penalties target individuals or entities not listed on the IRS's register of cryptocurrency miners. If passed, the bill is expected to take effect in 2026. Currently in the public discussion phase, the draft requires review by the State Duma (lower house of parliament) and signature by the president to become law.
Background of the proposal and current regulations
Russia officially legalized cryptocurrency mining on November 1, 2024, but with strict conditions. Legal entities and sole proprietors must register in a special register of the Federal Tax Service; individuals can conduct small-scale mining without registration if their monthly electricity consumption does not exceed the government-mandated limit (approximately 6,000 kWh). Furthermore, all miners must declare the amount of digital currency they earn from mining and their associated addresses to the tax authorities monthly.
By mid-2025, over 1,000 miners had registered, but officials estimate that the majority remain non-compliant. Illegal mining is often accompanied by problems such as electricity theft, grid overload, and tax revenue loss, particularly in energy-rich regions like Siberia. This draft bill from the Ministry of Justice reflects the authorities' efforts to strengthen energy security and fiscal revenue protection while leveraging the advantage of low electricity prices to develop the mining industry.
