Russia’s Crypto Crackdown: 5 Years in Prison for Unregistered Miners

Russia slams the hammer on rogue crypto mining operations. The message is clear: register or face the consequences—up to five years behind bars.

The New Mining Mandate

Moscow isn't playing games. The government is rolling out a formal registration framework, demanding miners step into the light. The goal? To bring a sprawling, energy-intensive industry under state supervision and onto the tax rolls. It's a classic move: regulate what you can't stop.

Why the Sudden Scrutiny?

For years, Russia turned a semi-blind eye to its booming mining sector, a beneficiary of cheap power and cold climates. But unregulated growth brings headaches—grid strain, lost revenue, and financial opacity. This crackdown aims to plug those leaks, transforming crypto's wild frontier into a managed resource. Think of it as a digital resource nationalization, minus the tanks.

The Global Ripple Effect

Russia's move sends a tremor through the mining world. It pressures other nations with large, informal mining sectors to consider similar controls. For the global hash rate, it could mean migration—or formalization. Either way, the era of anonymous, garage-based mining ops facing major state penalties is here. Another sign that crypto's 'lawless' phase is getting a bureaucratic makeover—just in time for traditional finance to finally figure out what a blockchain is.

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.

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.

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