The Russian Ministry of Justice proposed to impose criminal penalties for illegal cryptocurrency mining, with a maximum of 5 years in prison

The Russian Ministry of Justice recently submitted a draft amendment to the Criminal Code aimed at combating unregistered illegal cryptocurrency mining activities in the country.

According to the draft, illegal mining activities will face fines of up to 1.5 million rubles (approximately $19,000) or up to two years of compulsory labor. If illegal mining activities involve substantial profits, the maximum prison term can reach 5 years, along with fines of up to 2.5 million rubles (approximately $31,800) or 480 hours of compulsory labor. The amendment also sets penalties of up to 5 years of imprisonment or compulsory labor for substantial profits realized by illegal "organized groups." Russian Deputy Finance Minister Ivan Chebeskov stated that as of June 19, 2025, only about 30% of cryptocurrency miners have completed registration and achieved operational legalization, while most practitioners remain in the "gray area." According to current regulations, individual miners with a monthly electricity consumption of less than 6,000 kilowatt-hours are not required to register but still need to pay personal income tax.