Russia Proposes Prison Terms for Unregistered Crypto Miners in Regulatory Crackdown
Russia's Ministry of Justice has escalated its crypto mining crackdown with a draft law threatening five-year prison sentences for unregistered operators. The proposal, published on the government's legal portal, introduces criminal penalties under Article "Illegal mining of digital currency"—marking a stark reversal from last month's legalization framework.
The law targets miners operating outside state registries, with penalties scaling by profitability. Basic violations carry fines or compulsory labor, while large-scale operations face harsher sanctions. The legislation defines "significant damage" thresholds that trigger criminal liability—a deliberate MOVE to curb gray-market mining flourishing amid Western sanctions and energy subsidies.
This hardening stance coincides with Russia's broader strategy to control crypto infrastructure while monetizing mining through taxed industrial operations. Analysts note parallels to China's 2021 mining ban, though Moscow appears to favor regulation over outright prohibition—for now.
