Key Highlights
- Russia’s Ministry of Justice has proposed adding Article 171.6 to the Criminal Code, introducing fines up to 1.5 million rubles, forced labor up to two years, and up to five years’ imprisonment.
- Building on the 2024 legalization of cryptocurrency mining and mandatory registration, these proposed criminal penalties target unregistered operations to combat electricity theft and grid strain in regions like Siberia.
- The stricter rules risk driving illegal operations abroad or underground, potentially undermining Russia’s global mining position.
The Russian Ministry of Justice has unveiled draft amendments to the Criminal Code that would introduce severe penalties for unregistered cryptocurrency mining. The new rules include fines up to 1.5 million rubles (approximately $15,000) and imprisonment for up to five years in aggravated cases.
These proposals, published on the federal portal for draft regulatory acts and reported by Interfax, mark a significant escalation in Russia’s regulation of the crypto mining sector. According to the publication, Article 171.6 “Illegal mining of digital currency and activities of a mining infrastructure operator” is being added to the Criminal Code of the Russian Federation.
Details of the proposed criminal penalties
The proposals follow announcements by Deputy Prime Minister Alexander Novak in early December 2025, targeting implementation in 2026. They build on earlier administrative fines introduced in 2025 for lesser violations.
The new Article 171.6 introduces basic offenses regarding unregistered mining causing significant damage while generating income over 3.5 million rubles (nearly $44k). It also includes fines up to 1.5 million rubles, compulsory labor up to 480 hours as well as forced labor up to two years.
Moreover, aggravated cases, such as those involving organized groups or income exceeding 13.5 million rubles, could result in fines of 500,000 to 2.5 million rubles, forced labor up to five years, or imprisonment up to five years.
Implications for Russia’s crypto sector
These measures aim to address ongoing issues like unauthorized electricity use straining national grids, particularly in Siberia, and unreported income. Even in some regions, such illegal mining practices have contributed to blackouts and financial losses for utilities.
While encouraging formalization and tax revenue, critics warn stricter rules could drive underground operations abroad or deter investment. Russia, once poised to challenge the U.S. for global mining dominance, now balances economic benefits with energy security and regulatory control. Even some officials stated that crypto mining is essentially boosting the strength of the ruble.
As the draft undergoes public review, the sector awaits potential passage, signaling Russia’s continued pivot toward a tightly controlled digital asset framework amid geopolitical pressures.
From gray area to regulated industry
Russia’s relationship with cryptocurrency mining has evolved dramatically over the past decade. Prior to 2024, mining operated in a legal gray zone. While not explicitly banned, it faced scrutiny due to energy consumption concerns and sanctions evasion risks. In 2022, the Central Bank proposed a full ban on mining and crypto activities but this was not enacted.
By 2023, Russia had emerged as the world’s second-largest crypto miner, with an estimated capacity of 1 gigawatt and production of around 54,000 Bitcoin worth billions of dollars. The facilities for these productions are largely concentrated in energy-rich regions like Siberia and Irkutsk Oblast.
A pivotal shift occurred in 2024 when President Vladimir Putin signed laws legalizing mining effective November 1, 2024. These laws defined mining as a legitimate activity, required registration for legal entities, individual entrepreneurs, and infrastructure operators with the Federal Tax Service (FTS), and mandated monthly reporting of mined assets.
By mid-2025, over 1,000 entities had registered, but compliance remained low amid rapid sector growth and persistent illegal operations, often involving electricity theft.
Also read: Iranian Currency Collapse Shows Need for Bitcoin: Bitwise CEO
