Russia Escalates Crypto Mining Crackdown with Prison Terms Up to Five Years

Russia's Ministry of Justice has unveiled draconian amendments targeting unregistered cryptocurrency miners, introducing prison sentences of up to five years. The proposed legislation, published on December 30, 2025, marks a stark reversal from the country's legalization of mining just over a year prior.

Article 171.6 of Russia's Criminal Code establishes a two-tier penalty system. Miners operating without registration face fines up to 1.5 million rubles ($35,000) or compulsory labor for minor violations. Large-scale operations risk harsher consequences: fines reaching 2.5 million rubles, forced labor, or five-year prison terms for organized groups or revenues exceeding 13.5 million rubles.

The crackdown follows Deputy Prime Minister Alexander Novak's December announcement of increased government oversight in energy-intensive mining operations. This regulatory shift threatens to destabilize Russia's position in the global mining sector, potentially creating Ripple effects across cryptocurrency markets.