Russia is moving to criminalize unregistered crypto mining, proposing new penalties that escalate with the size and organization of operations — a clear attempt to pull a largely opaque industry into official view. What’s in the draft - The Justice Ministry has published draft amendments that would add a new Criminal Code article — Article 171.6, “Illegal Mining Of Digital Currency And Activities Of A Mining Infrastructure Operator.” The draft is posted on a regulatory portal. - Penalties for unregistered mining would include fines, compulsory or forced labor, and in severe cases imprisonment. Key thresholds and penalties in the draft: - Unregistered miners: up to 1.5 million rubles in fines, compulsory labor up to 480 hours, or forced labor up to two years. - Liability kicks in if mining generates “large-scale” income (set at 3.5 million rubles). - For operations tied to an organized group or producing “especially large” income (13.5 million rubles), penalties escalate: fines between 500,000 and 2.5 million rubles, forced labor up to five years, or up to five years’ imprisonment plus additional financial sanctions. - The draft also lets courts impose fines equal to a convicted person’s salary or income for specified periods, which would effectively target mining-derived earnings. Regulation already in place - Russia legalized mining on November 1, 2024, under a stricter regulatory framework. On that date the Federal Tax Service (FTS) opened registries for miners and infrastructure operators. - All legal entities and individual entrepreneurs engaged in mining must register. Registered miners are required to report their mined digital currency monthly through a section of their personal FTS accounts. - According to the FTS, there were more than 1,000 participants in the registries by the end of May 2025. Why this matters - The draft appears designed to force visibility on a sector that has often operated informally — enabling authorities to target tax evasion, misuse of subsidized power, and oversized, unregulated mining farms. - Small, informal miners are most exposed: they may lack paperwork or the know-how to comply with the registry and reporting requirements, and so face the greatest legal risk if the criminal measures are enacted. Where this could go next - Deputy Prime Minister Alexander Novak has indicated the government plans to introduce criminal liability for illegal mining (and illegal lending) in 2026. With registries and reporting already active, the draft suggests a phased approach: first registration and reporting, then tougher criminal penalties to enforce compliance. Market context - The global crypto market cap stands at about $2.97 trillion (chart: TradingView), underscoring the broader economic scale behind policy moves targeting mining. Sources and credits - Draft published on a regulatory portal; registry and participant figures from the Federal Tax Service; market cap and chart reference: TradingView. Featured image from Unsplash. Read more AI-generated news on: undefined/news

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