Russia Warns Crypto Miners: 5 Years In Prison For Skipping Registration

bitcoinistPublished on 2025-12-31Last updated on 2025-12-31

Abstract

Russia's Ministry of Justice has proposed criminal penalties for unregistered cryptocurrency mining, introducing a new article to the Criminal Code. The draft law stipulates fines up to 2.5 million rubles, forced labor, or imprisonment up to five years, depending on the operation's scale. Mining was legalized under strict registration rules in November 2024, requiring monthly reporting to the Federal Tax Service. The measures aim to increase oversight, combat tax evasion, and curb unauthorized use of subsidized energy. Criminal liability for illegal mining is expected to be enforced starting in 2026.

Based on reports, Russia’s Ministry of Justice has proposed criminal penalties for people who mine digital currency without registering. The draft would add a new criminal article and set fines, forced labor and prison terms tied to how big the operation is and how much money it made. The move follows a law that made mining legal under strict rules last year.

Russia: New Criminal Article Proposed

According to the draft amendments posted on a regulatory portal, a new Article 171.6 titled “Illegal Mining Of Digital Currency And Activities Of A Mining Infrastructure Operator” would be added to the Criminal Code.

Under the proposal, an unregistered miner could face a fine of up to 1.5 million rubles, compulsory labor for up to 480 hours, or forced labor for up to two years. The draft draws a line at income thresholds: if mining generated large-scale income of 3.5 million rubles, liability applies.

For operations that are part of an organized group or that produced especially large income of 13.5 million rubles, penalties rise sharply — fine ranges from 500,000 to 2.5 million rubles, forced labor of up to five years, or imprisonment for up to five years combined with additional financial penalties.

Total crypto market cap currently at $2.97 trillion. Chart: TradingView

Registries And Monthly Reporting

Reports have disclosed that Russia legalized mining on November first, 2024, and on that date the Federal Tax Service opened special registries. All legal entities and individual entrepreneurs involved in mining must register, and operators of mining infrastructure are included.

Registered miners are required to report mined digital currency every month through a section in their personal accounts on the Federal Tax Service website. Based on the agency’s figures, there were more than 1,000 participants listed in the registries by the end of May 2025.

Image: PayBitoPro

Visibility And Control Through Registration

The draft law appears aimed at forcing visibility into a sector that has often operated in the shadows. By tying criminal penalties to failure to join the registry, authorities gain tools to pursue operators who avoid paying taxes, use subsidized power, or run large-scale farms without oversight. Smaller, informal miners are left most exposed because they may lack the paperwork or know-how to comply with reporting rules.

Timing And Enforcement Signals

Deputy Prime Minister Alexander Novak has said the government plans to introduce criminal liability for illegal mining and illegal lending in 2026.

That comment, combined with the publication of the draft amendments, suggests phased steps: rules and registries are already in place, while tougher criminal measures could follow next year.

Some language in the draft also allows courts to impose fines equal to a convicted person’s salary or income for set periods, which would target earnings from mining operations.

Featured image from Unsplash, chart from TradingView

Related Questions

QWhat is the Russian Ministry of Justice proposing for unregistered cryptocurrency miners?

AThe Russian Ministry of Justice has proposed adding a new criminal article to the Criminal Code, which would impose penalties including fines, forced labor, and prison terms of up to five years for individuals who mine digital currency without registering.

QWhat are the specific penalties for illegal mining that generates 'large-scale income' of 3.5 million rubles?

AFor mining operations that generate a 'large-scale income' of 3.5 million rubles, the proposed penalties include a fine of up to 1.5 million rubles, compulsory labor for up to 480 hours, or forced labor for up to two years.

QWhat is the purpose of the new registration requirement for crypto miners in Russia?

AThe registration requirement aims to force visibility and control over the mining sector, allowing authorities to pursue operators who avoid taxes, use subsidized power, or run large-scale farms without oversight.

QBy when did the Federal Tax Service open special registries for miners, and how many participants were registered by the end of May 2025?

AThe Federal Tax Service opened special registries on November 1, 2024. By the end of May 2025, there were more than 1,000 participants listed in the registries.

QWhen does the Russian government plan to introduce criminal liability for illegal mining, according to Deputy Prime Minister Alexander Novak?

ADeputy Prime Minister Alexander Novak stated that the government plans to introduce criminal liability for illegal mining in 2026.

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