The Russian government is preparing sanctions against those who violate mining regulations, with fines of up to $25,000.
The Ministry of Digital Development, Communications and Mass Media of the Russian Federation has drafted a bill introducing financial penalties and the seizure of cryptocurrencies for miners operating illegally.
The ministerial proposal, currently under interdepartmental review according to Forbes Russia, would grant judicial authorities extraordinary powers over the mining sector. Courts would be able not only to impose financial penalties but also to directly confiscate illegally mined bitcoins.
Fines will follow a progressive scale:
- private individuals: 100,000 to 200,000 rubles ($1,272–$2,544);
- individual entrepreneurs and public officials: 200,000 to 400,000 rubles ($2,544–$5,088);
- companies and corporations: 1 million to 2 million rubles ($12,728–$25,456).
Crackdown on mining pools
Another aspect of the proposed legislation concerns mining pools. If approved, the bill would introduce penalties for those participating in such groups illegally. The government strategy aims to amend the Code of Administrative Offenses, effectively turning illegal mining into a criminal offense with harsher consequences than current administrative fines.
Crypto payments under scrutiny
Beyond mining operations, the new provisions would also target the use of cryptocurrencies as a means of payment outside the official sandbox managed by Russia’s Central Bank. Sanctions for this violation could reach 1 million rubles ($12,728).
Andrey Medvedev, Head of the Legal Department at the Central Bank, emphasized during the St. Petersburg International Legal Forum that “[crypto] illegally used as a means of payment will be confiscated.”
Regional restrictions on mining
Under current Russian regulations, unregistered citizens are allowed to mine domestically provided their energy consumption does not exceed 6,000 kWh per month. However, about ten Russian regions and territories under Russian control maintain specific restrictions.
Operators of mining infrastructures — primarily data center and hosting service providers — will be required to report operational details to Rosfinmonitoring, the national financial intelligence agency, including wallet addresses used at their facilities.
While penalties are tightening, the government recently chose not to extend mining bans to new regions. The government’s energy commission, chaired by Deputy Prime Minister Alexander Novak, rejected a proposal to ban mining in Khakassia and postponed annual restrictions in Zabaikalsky Krai and Buryatia. However, Moscow has approved a one-year mining ban in the southern part of the Irkutsk region, widely considered the de facto capital of Russian mining.
