Russia Crypto News
In a significant move reflecting growing concerns from finance officials, Russia’s Ministry of Justice has proposed amendments to the Criminal Code. These amendments introduce harsh penalties for illegal cryptocurrency mining, a practice that has become increasingly rampant in the country. The proposal is designed to combat widespread unregistered mining activities, which have raised alarm among regulatory authorities and industry stakeholders alike.
The draft bill outlines penalties that could reach as high as 1.5 million rubles, along with a potential two-year sentence of forced labor for engaging in unregistered mining operations. If the unauthorized mining yields substantial profits, violators could face up to five years of imprisonment, 480 hours of forced labor, and fines escalating to 2.5 million rubles. This is a serious escalation intended to deter organized groups that profit significantly from illegal mining activities.
As of mid-June 2023, only about 30% of cryptocurrency miners in Russia had registered their operations legally, according to Deputy Finance Minister Ivan Chebeskov. He noted the government’s aim is to facilitate the migration of mining operations from the underground economy into a regulated framework. This could potentially allow for more oversight and taxation of the burgeoning crypto sector.
The regulatory landscape has been evolving since August 2024, when President Vladimir Putin signed laws that created a formal framework for cryptocurrency mining. Effective November 1, 2024, the legislation mandates that all mining entities, including infrastructure providers, register and comply with taxation requirements. The legislation pushes for transparency and accountability in an industry often criticized for its lack of oversight.
As of the end of October 2025, there were 1,364 registered cryptocurrency miners in Russia, according to Finance Minister Anton Siluanov. This indicates a gradual shift towards compliance; however, the government remains focused on capturing revenue generated by this growing industry. The ongoing push is seen as a method for Russia to harness the economic potential of cryptocurrency while minimizing risks associated with unregulated activities.
Furthermore, the new regulations present a bifurcated approach to registration. Miners who use less than 6,000 kWh monthly are classified as physical persons and are exempt from mandatory Federal Tax Register registration. However, they are still required to pay personal income tax on any cryptocurrencies mined. In contrast, larger operations face rigorous mandatory registration and must adhere to monthly tax reporting responsibilities.
Another critical aspect of the proposed legal framework is the prohibition on foreign entities participating in mining activities within Russia. This restriction underscores a nationalistic approach to the industry, aiming to ensure that the benefits of cryptocurrency mining accrue domestically. Critics of the law argue that these regional restrictions undermine the overall goal of fully legalizing cryptocurrency mining, complicating the landscape further for potential investors and miners.
The proposed draft bill underscores the government’s commitment to reinforcing compliance and accountability in the rapidly evolving crypto mining sector. Officials have stressed the importance of finalizing the transition of mining practices into formalized regulatory frameworks and tax systems. Such measures reflect an overarching strategy to tackle the challenges posed by illegal mining while ensuring that Russia can compete effectively in the global crypto landscape.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
