Up to five years in prison for unregistered operations: Moscow tightens control over unauthorized mining.
According to Interfax, the Russian Ministry of Justice has submitted a draft law introducing criminal penalties for those engaged in Bitcoin mining without official registration. The proposed sanctions include fines of up to 2.5 million rubles (approximately $31,000) and imprisonment of up to five years for large-scale operations.
Since November 1, 2024, Russia has officially legalized the digital asset mining industry, introducing a mandatory registration system with the Federal Tax Service. Despite this step toward regulation, the country still faces thousands of operators working in the shadows.
The proposed amendments to the Russian Criminal Code would introduce Article 171.6, establishing graduated penalties based on the severity of violations. Individual operators causing significant damage or generating income above 3.5 million rubles could face fines of up to 1.5 million rubles, up to 480 hours of forced labor, or two years of imprisonment.
Penalties are harsher for organized groups or operations exceeding 13.5 million rubles in revenue. In such cases, responsible parties could face fines ranging from 500,000 to 2.5 million rubles, up to five years of forced labor, or five years of imprisonment, with additional fines up to 400,000 rubles.
Deputy Prime Minister Alexander Novak confirmed that the government intends to introduce criminal liability for illegal mining and unauthorized providers by 2026.
The legal registration system
Currently, legal entities and entrepreneurs must register with the Federal Tax Service and report their earnings monthly through dedicated online portals. As of May 2025, over 1,000 participants were registered in the official records.
The tax system sets a 25% rate for corporate miners, while individuals are subject to progressive taxation from 13% to 22%. However, there is an exemption for home miners consuming less than 6,000 kWh per month, who are not required to register.
According to Rosseti North Caucasus, in the first half of 2025, illegal miners in Ingushetia stole 35.4 million kWh of electricity, worth over $4.3 million, representing 94% of all unaccounted-for consumption in the republic.
