Russia Proposes Tough Penalties, Prison for Illegal Crypto Mining

Russia’s Ministry of Justice has unveiled draft legislation imposing severe criminal penalties for unregistered cryptocurrency mining operations. The proposed amendments to the Criminal Code include fines reaching 2.5 million rubles and prison sentences of up to five years for the most serious violations.

The Russian Ministry of Justice has proposed imposing penalties for illegal cryptocurrency mining, including fines of up to 1.5 million rubles or up to two years of compulsory labor. In cases involving especially large profits or organized criminal groups, the maximum sentence…

— Wu Blockchain (@WuBlockchain) December 30, 2025

The draft regulatory legal act introduces Article 171.6 to the Criminal Code. It specifically targets digital currency mining by individuals and entities not listed in official government registries. The legislation arrives as Russia accelerates its crypto regulatory framework.

Under the proposed rules, unregistered miners face fines up to 1.5 million rubles for basic violations. Alternatively, offenders could receive 480 hours of compulsory work or two years of forced labor. These penalties apply when violations cause major damage or involve income exceeding 3.5 million rubles.

Organized criminal groups face substantially harsher consequences under the draft legislation. Fines escalate to between 500,000 and 2.5 million rubles for coordinated illegal mining operations. Prison terms extend to five years when especially large damages occur, or income surpasses 13.5 million rubles.

Russia’s Mining Legalization Takes Shape

Russia officially legalized cryptocurrency mining on November 1, 2024, establishing a formal regulatory structure. The Federal Tax Service launched specialized registries on the same day. All legal entities and individual entrepreneurs conducting mining operations must now register with authorities.

By the end of May 2025, more than 1,000 participants had enrolled in the Federal Tax Service registries. Registered miners must submit monthly reports on their digital currency production. They file these disclosures through dedicated sections in their personal accounts on the tax service website.

Deputy Prime Minister Alexander Novak announced government intentions in early December. He confirmed plans to introduce criminal liability for illegal mining operations by 2026. The current draft legislation represents the formal implementation of that commitment.

The proposed penalties reflect Russia’s determination to bring the shadow mining economy under state control. Authorities aim to capture tax revenue while maintaining oversight of energy consumption patterns across the sector.

Central Bank Eyes Broader Crypto Controls

Meanwhile, Russia’s Central Bank has acknowledged cryptocurrency mining’s potential role in strengthening the ruble. Governor Elvira Nabiullina addressed the connection during a December press conference. She noted the difficulty of measuring mining’s precise impact on exchange rates.

Russian central bank governor Elvira Nabiullina said Bitcoin mining may be contributing to a stronger ruble, though its impact is hard to quantify due to gray-area activity. She added that mining has become an additional support factor. Meanwhile, the central bank is discussing…

— Wu Blockchain (@WuBlockchain) December 22, 2025

Nabiullina highlighted that substantial mining operations remain outside official oversight. This shadow economy status complicates accurate assessments of the sector’s contribution to currency strength. She conceded mining represents one factor supporting the ruble’s performance.

Deputy Head of the Presidential Administration Maxim Oreshkin previously pointed to overlooked crypto-related financial flows. He characterized the mining sector as a new export category affecting foreign exchange dynamics. These observations underscore the government’s growing focus on the industry.

The Central Bank has also prepared comprehensive regulations for cryptocurrency investment. New rules establish pathways for both qualified and unqualified investors to access digital assets. Russians will be able to purchase cryptocurrencies through licensed intermediaries under the proposed framework.

Digital currencies and stablecoins would gain recognition as currency values under the draft concept. However, using cryptocurrencies for domestic payments remains strictly prohibited. The framework emphasizes substantial risks including volatility and potential total loss of funds.

The regulatory developments signal Russia’s multifaceted approach to digital assets. Authorities seek to capture economic benefits while maintaining strict control over operations. The combination of legalization, registration requirements, and criminal penalties creates a comprehensive oversight system.

Industry participants now face clear choices under the evolving regulatory landscape. Registration offers legal protection and market access through established channels. Unregistered operations carry escalating risks of prosecution and severe financial penalties.

The proposed legislation awaits further review through Russia’s legislative process. If enacted, it would establish one of the world’s most structured frameworks for cryptocurrency mining enforcement. Russia continues positioning itself as a major player in the global digital asset economy.