Russia’s New Crypto Law: Unregistered Miners Face 5-Year Prison Terms
Moscow just dropped a regulatory hammer—and it's aimed squarely at crypto miners operating outside the law.
The New Rules: Mine Legally or Don't Mine at All
Russia's latest legislative push mandates formal registration for all cryptocurrency mining operations. The penalty for non-compliance? Up to five years behind bars. The move signals a stark shift from the industry's often-gray operational past toward a state-controlled framework.
Why the Crackdown? Control and Revenue
Authorities aren't just chasing rogue operators—they're chasing a slice of the profits. By bringing miners into the fold, the state gains oversight, potential taxation avenues, and control over energy consumption. It's a classic play: first regulate, then monetize.
The Global Ripple Effect
This isn't just a local story. Russia holds significant global mining hash power. Forcing operations to register—or shut down—could redistribute mining activity worldwide, impacting network security and regional energy grids. Other nations with cheap power are watching closely.
A Calculated Risk for the Industry
For compliant miners, this could mean stability and legitimacy. For the rest, it's an existential threat. The law draws a clear line in the sand, betting that formalization will attract more institutional investment than it drives away clandestine operations.
In the end, it's another step in the great crypto assimilation—where disruptive tech gets a government serial number and a tax bill. Because nothing says 'financial revolution' like a five-year sentence for improper paperwork.
Russia is tightening its grip on crypto mining and this time, the consequences are serious.
Just weeks after officially legalizing cryptocurrency mining, the Russian Ministry of Justice has proposed new criminal penalties targeting miners who operate outside the system. If approved, illegal crypto mining could carry fines, forced labor, and even prison sentences of up to five years.
Russia Targets Unregistered Crypto Miners
The proposal, published on Russia’s official legal draft portal, introduces a new article to the Criminal Code:, titled “Illegal mining of digital currency and activities of a mining infrastructure operator.”
Under the draft law, anyone mining digital assets without being registered could face punishment. The document specifically refers to “conducting digital currency mining by a person not included in the register of persons engaged in digital currency mining.”
For basic violations, penalties could include a fine of up to, compulsory labor, or up to.
Higher Profits Could Mean Prison Time
The law draws a clear line based on the scale of profits.
If illegal mining causes “significant damage” or generates income of, criminal liability applies. For cases involving organized groups or profits deemed “especially large” –– the punishment becomes much harsher.
In those cases, courts could impose fines ranging from, forced labor for up to five years, or, with additional fines possible.
Legal Mining Comes With Rules
Russia legalized crypto mining on, but with strict conditions. On the same day, the Federal Tax Service launched official registries for miners and mining infrastructure operators.
As of the end of May 2025, more thanwere registered. All miners, including individuals and businesses, must report their mined digital assetsthrough their tax accounts.
Enforcement Is the Next Step
In early December, Deputy Prime Minister Alexander Novak said the government plans to introduce criminal liability for illegal mining in.
The direction is now clear. Crypto mining is allowed in Russia but only for those willing to operate openly, register, and report. Those who don’t may soon face more than just fines.
