What to Know
- Russia plans jail time of up to 5 years for illegal crypto mining, along with heavy fines and forced labor.
- Only registered miners are allowed to operate, with monthly reporting required under Russian tax rules.
- The crackdown comes even as legal mining grows, with banks like Sberbank backing registered miners.
The Russian Ministry of Justice has proposed new criminal penalties that could include heavy fines, forced labor and even prison time for those mining crypto outside the law. According to Russia’s official legal and regulatory portal, the government plans to add a new article to the Criminal Code called “Illegal mining of digital currency and activities of a mining infrastructure operator.”
Under the new rules, people who mine digital currency without being officially registered could face a fine of up to 1.5 million rubles, or compulsory labor for up to 480 hours, or forced labor for up to two years. These penalties would apply if the mining caused serious harm to citizens, businesses, or the state, or if it generated large profits. In this draft, “large-scale income” is defined as more than 3.5 million rubles.
The punishments become even harsher if the crime involves an organized group or very large profits. In those cases, fines could range from 500,000 to 2.5 million rubles. Courts could also order forced labor for up to five years or prison sentences of up to five years. In some cases, an extra fine may also be added on top of jail time.
Why Russia Is Tightening the Rules
Crypto mining was officially legalized in Russia on November 1, 2024. At the same time, the government launched special registries managed by the Federal Tax Service. All companies, individual entrepreneurs, and mining infrastructure operators are required to register. Miners must also report their monthly mining activity through a special online portal.
As of the end of May 2025, more than 1,000 participants were registered. Still, authorities believe many miners are operating in the shadows, often using stolen or unpaid electricity. This has become a major concern in regions already facing power shortages. In early December, Deputy Prime Minister Alexander Novak confirmed that Russia plans to introduce full criminal liability for illegal mining and illegal lending starting in 2026.
Concerns about illegal mining are not just theoretical. According to reports, Russian authorities recently detained seven employees from the Rosseti Moscow Region power grid. The suspects included both electricians and senior engineers. Investigators believe these employees helped illegal mining operations by lowering electricity meter readings and helping miners avoid inspections. The Russian Interior Ministry estimates the economic damage from this scheme at around 10 million rubles.
Support at the Same Time
Just a few days ago, Sberbank announced that it had issued Russia’s first-ever crypto-backed loan. The loan was given to Intelion Data, one of the country’s largest Bitcoin mining companies. Sberbank said the loan was secured using cryptocurrency mined by the company. Although the bank did not reveal the loan size, it called the deal a pilot project and hinted that similar products could follow.
At the same time, the Central Bank of Russia has proposed a broader framework to regulate cryptocurrencies. The plan would allow both professional and everyday investors to buy crypto, though smaller investors would face yearly limits. Crypto payments for goods and services inside Russia would still remain banned.
Final Thoughts
Russia’s approach is becoming clearer legal mining is welcome, but illegal operations will face serious consequences. Authorities are using new tools like smart meters, internet traffic tracking, and even drones with thermal cameras to find hidden mining farms. As enforcement becomes stricter, miners operating outside the law may soon find it much harder to stay hidden.
Also Read: Ethereum Price Stalls Near $3K as a Massive Breakout Looms
