Russia is moving toward tighter oversight of cryptocurrency mining as a State Duma committee has recommended first-reading approval of a bill that would introduce criminal penalties for illegal mining activities. The proposal is aimed at bringing more miners and infrastructure providers into the legal framework.
Bill Targets Unregistered Mining and Unauthorized Infrastructure
The draft legislation would amend the Criminal Code to classify unregistered cryptocurrency mining and the unauthorized provision of mining infrastructure as criminal offenses. This means enforcement would not be limited to miners themselves, but could also extend to those supporting mining operations without proper authorization.
Under the proposal, entities that earn more than 13 million rubles, or roughly $140,000, from illegal activities could face penalties of up to five years in prison. In addition, all crypto assets obtained through illegal mining would be subject to confiscation. The structure of the bill suggests Russian lawmakers want to combine criminal liability with asset seizure to strengthen deterrence.
Large Gap Between Total Miners and Registered Operators
Official figures show that Russia has around 50,000 mining entities, yet fewer than 1,500 are legally registered. That gap highlights the scale of informal or non-compliant mining activity in the country and helps explain the push for stricter enforcement.
In practical terms, the proposed law is designed to force compliance among miners operating outside the registration system and among parties providing related infrastructure without approval. If the bill advances through the legislative process, Russia’s crypto mining sector could face a significantly stricter compliance environment and greater legal risk for unregistered participants.