The Russian Ministry of Justice Ministry of Justice has proposed strict punishments, including prison time, for people who illegally mine cryptocurrency. This plan was announced on December 30 on the government’s website for legal updates.
Cryptocurrency mining is the process of solving difficult puzzles to earn digital money and confirm transactions on a blockchain. It requires special computers and uses a lot of electricity. In Russia, a law about cryptocurrency mining was introduced last year, and now the government wants to make sure that anyone mining outside the legal system faces serious consequences.
The new rules would change the Criminal Code and Criminal Procedure Code of Russia. Under the new plan, illegal cryptocurrency mining could result in a fine of up to 1.5 million rubles (about $20,000) or forced labor for up to two years. If the mining earns very large amounts of money or is done by a group, the punishment could go up to five years in prison.
Detailed Penalties for Illegal Mining
The changes include creating a new law called Article 171.6. It will focus on “Illegal mining of digital currency and activities of a mining infrastructure operator.” Illegal mining means mining digital currencies without being registered with the government as legal miners. This new rule will punish illegal miners who cause big problems for citizens, companies, or the government, or who earn more than 3.5 million rubles from mining.
For smaller offenses, the penalty can include up to 480 hours of labor or two years of forced labor. For more serious cases where miners earn over 13.5 million rubles, the punishment becomes harsher. These could include fines between 500,000 and 2.5 million rubles, forced labor for up to five years, or even five years of prison time. Courts can also add a fine of up to 400,000 rubles or six months of the offender’s income.
Background on Cryptocurrency Mining Laws in Russia
Russia made cryptocurrency mining legal in November 2024. Along with this new rule, the Federal Tax Service of Russia created special lists for companies and individuals that do mining legally. Anyone involved in legal mining must register and report their activities monthly on the tax website. By May 2025, over 1,000 participants were listed in these registries.
Deputy Prime Minister Alexander Novak mentioned in December that the government is planning to make illegal mining even harder, with stricter penalties starting in 2026. This will cover not just illegal cryptocurrency operations but also illegal lending activities.
Power Problems Caused by Illegal Mining
One of the reasons Russia is cracking down on illegal mining is due to its impact on the country’s electricity system. Illegal mining uses huge amounts of power, stealing electricity and hurting the supply for other users.
Earlier reports from Rosseti Group, Russia’s state-owned power grid company, revealed that illegal mining caused losses of over 1.3 billion rubles in 2024. The problem was especially bad in areas like the North Caucasus, Novosibirsk, and the Volga region. Some illegal miners used thousands of machines to mine cryptocurrency and stole electricity on a large scale. This led to over 40 criminal investigations against them.