Russia Plans Fines, Labor for Illegal Mining Activity

• Draft law adds Article 171.6, criminalizing crypto mining outside Russia’s state registry launched after legalization in 2024.
• Unregistered miners face fines up to 1.5m rubles, forced labor or prison if income or damage exceeds set levels.
• Harsher penalties target organized groups as Russia links illegal mining to power losses and electricity misuse cases.

The Russian Ministry of Justice proposed new criminal penalties on December 30 for illegal cryptocurrency mining, according to draft amendments published on the government’s portal of regulatory legal acts.

The proposal would apply nationwide and introduces fines of up to 1.5 million rubles or up to two years of compulsory labor for unregistered miners. It targets individuals and organizations operating outside the registry system launched after mining became legal in November 2024.

Proposed Article 171.6 and Penalty Structure

The draft adds Article 171.6 to the Criminal Code under the title “Illegal mining of digital currency and activities of a mining infrastructure operator.” It defines violations as mining conducted by persons not included in the official state registry.

Penalties start at fines of up to 1.5 million rubles, compulsory labor for up to 480 hours, or forced labor for up to two years. Liability arises when unregistered mining causes significant damage or generates income valued at 3.5 million rubles or more. Larger offenses include activity by organized groups or income above 13.5 million rubles.

Expanded Consequences for Aggravated Offenses

Part Two of the draft outlines harsher measures for organized groups or cases involving especially large-scale damage. Penalties may include fines between 500,000 and 2.5 million rubles or income-based fines equal to one to three years of earnings.

Courts may issue up to five years of forced labor or up to five years in prison, with optional additional fines of up to 400,000 rubles or six months of income. The proposed rules follow comments made in early December by Deputy Prime Minister Alexander Novak, who confirmed plans for criminal liability in 2026.

Registry Requirements and Power System Impact

Legal mining began on November 1, 2024, when the Federal Tax Service launched mandatory registries for companies, individual entrepreneurs, and infrastructure operators. The agency reported more than 1,000 registered participants by the end of May 2025. All miners must report monthly production through their personal tax service accounts. Meanwhile, Rosseti Group recorded losses of over 1.3 billion rubles in 2024 due to unauthorized mining operations and reported more than 40 criminal investigations linked to electricity misuse.