Russia Plans Harsher Sanctions as Illegal Crypto Mining Persists in 2026

• Why Is Russia Tightening Crypto Mining Regulations?
• What Are the Key Provisions of the New Rules?
• How Does Russia’s Crypto Mining Industry Compare Globally?
• What’s Next for Crypto Miners in Russia?
• FAQs About Russia’s Crypto Mining Crackdown

Russia is cracking down on illegal cryptocurrency mining with proposed penalties including fines, forced labor, and prison sentences. Despite regulations introduced in 2024, only 30% of miners have registered, prompting stricter enforcement to bring the sector under state control and ensure tax compliance. The new measures target large-scale and organized operations, with fines up to 2.5 million rubles and prison terms of up to five years. Energy restrictions and reporting requirements aim to curb unchecked power usage and boost fiscal oversight.

Why Is Russia Tightening Crypto Mining Regulations?

Russia’s Ministry of Justice has drafted a bill to impose severe penalties on unregistered crypto miners, citing low compliance with existing rules. Since the 2024 legislation requiring registration, only about 30% of miners have complied, according to Deputy Finance Minister Ivan Chebeskov. The government views this as a significant loss of potential tax revenue and a strain on energy infrastructure. The proposed amendments to the Criminal Code include fines up to 1.5 million rubles (~$19,000) and forced labor for up to two years for individual violators. For larger operations or organized groups, penalties escalate to 2.5 million rubles and five-year prison sentences.

What Are the Key Provisions of the New Rules?

The legislation, signed by President Vladimir Putin in August 2024, includes:

• Monthly tax reporting: Miners must declare mined cryptocurrencies to authorities.
• Energy consumption thresholds: Operations using under 6,000 kWh/month are exempt from business registration but still subject to income tax.
• Foreign miner ban: Non-Russian entities are prohibited from mining.
• Regional energy limits: Local governments can restrict mining to protect power grids.

Finance Minister Anton Siluanov revealed that only 1,364 miners were registered nationwide by October 2025—a fraction of the estimated active operations. Critics argue the rules fall short of full legalization, but officials insist stricter oversight is needed to curb illegal activity.

How Does Russia’s Crypto Mining Industry Compare Globally?

Russia ranks among the top destinations for crypto mining due to its cheap energy, particularly in regions like Irkutsk. Data from CoinMarketCap shows the country accounts for nearly 12% of global bitcoin mining hash rate. However, the lack of regulation has led to rampant unauthorized operations, often tapping into subsidized residential electricity. The new laws aim to formalize the sector, mirroring approaches in Kazakhstan and Iran, where energy shortages forced crackdowns.

What’s Next for Crypto Miners in Russia?

With enforcement ramping up in 2026, miners face a choice: register and pay taxes or risk severe penalties. The BTCC research team notes that while the rules add bureaucracy, they could legitimize the industry long-term. "This isn’t just about fines—it’s about bringing crypto into the formal economy," said a BTCC analyst. Meanwhile, small-scale miners exploiting the 6,000 kWh loophole may delay registration, but authorities warn of tighter audits ahead.