Russian Justice Ministry Pushes Jail Time for Illegal Crypto Mining

Source: CoinEdition Original Title: Russian Justice Ministry Pushes Jail Time for Illegal Crypto Mining Original Link: https://coinedition.com/russian-justice-ministry-pushes-jail-time-for-illegal-crypto-mining/ Russia is moving closer to criminal penalties for illegal cryptocurrency mining as authorities tighten oversight of the sector. The Ministry of Justice has proposed amendments that would introduce fines, forced labor, and prison terms for unregistered mining activities. The proposal reflects growing concern about energy misuse, tax evasion, and unregulated digital income.

Officials aim to strengthen enforcement as crypto mining expands nationwide. The initiative also signals a broader shift toward stricter financial discipline in Russia’s digital economy.

Criminal Penalties for Unauthorized Mining

The proposed changes introduce a new article into the Criminal Code targeting unauthorized mining and infrastructure operations. Under the plan, individuals who mine digital assets without official registration could face fines of up to 1.5 million rubles.

Authorities could also impose compulsory labor of up to 480 hours or forced labor lasting two years. Significantly, penalties would apply only if mining causes measurable harm or generates large profits. Regulators define large-scale income at 3.5 million rubles.

Tougher Penalties for Organized Operations

The draft law outlines harsher punishment for repeat offenses or coordinated activity. Crimes involving organized groups or larger profits would trigger steeper sanctions. In such cases, fines could range from 500,000 to 2.5 million rubles.

Courts could also impose forced labor or prison sentences of up to five years. Moreover, especially large-scale income would start at 13.5 million rubles, raising the legal stakes considerably.

Officals believe stricter penalties would deter underground mining networks. These groups often exploit subsidized electricity or operate without paying taxes. Hence, the government sees criminal enforcement as necessary to protect public resources. The proposal also aligns with earlier policy statements targeting illegal financial activity.

Mining Rules Tighten After Legalization

Russia formally legalized cryptocurrency mining on November 1, 2024. Alongside legalization, authorities launched mandatory registries through the Federal Tax Service. All miners, including individuals and companies, must register before operating. Additionally, miners must report monthly production through an online tax portal.

As of late May 2025, more than 1,000 miners had joined the official registries. However, officials believe many operators still remain outside the system. Consequently, enforcement gaps persist despite the new legal framework. Deputy Prime Minister Alexander Novak previously stated that criminal liability for illegal mining could begin in 2026.