Russia Proposes Criminal Penalties for Illegal Crypto Mining Operations
The Russian government plans to introduce criminal liability for illegal cryptocurrency mining and unlicensed lending starting in 2026. A draft law introduces Article 171.6, which proposes graduated sanctions depending on the offense scale. Individual violators causing significant damage or profits exceeding 3.5 million rubles face fines up to 1.5 million rubles and up to 480 hours of compulsory labor or up to 2 years imprisonment. Penalties escalate for especially large profits or organized groups, including fines between 500,000 and 2.5 million rubles, forced labor or imprisonment up to 5 years, plus additional fines up to 400,000 rubles.
These penalties target illegal mining operations outside the Federal Tax Service registry established on November 1, 2024, when cryptocurrency mining was legalized. As of May 2025, over 1,000 participants were registered, with corporate miners taxed at 25%, individuals at 13–22%, and households consuming less than 6,000 kWh monthly exempted.
Illegal mining causes substantial power grid drain. Authorities in St. Petersburg seized roughly 2,700 mining rigs from a facility bypassing electricity meters since 2018, which cost the grid about 0.5 billion rubles. Other incidents include an Omsk power plant employee who took 500,000 rubles in bribes to facilitate electricity theft. In Dagestan, mining farms were found inside coolant tanks, and in Ingushetia, 35.4 million kWh were stolen in the first half of 2025, valued at approximately $4.3 million and representing 94% of unaccounted consumption.
Cryptocurrency mining in Russia is economically framed as an export activity. The country reportedly produces tens of thousands of Bitcoins annually, generating daily revenue around 1 billion rubles, and accounts for over 16% of the global hash rate during summer months, ranking second worldwide.
Enforcement measures include the use of thermal-imaging drones and staff bonuses. In Kiritsy village near Moscow, a mining firm was suspended for 30 days due to noise exceeding 50 decibels near a children's tuberculosis health center, with plans underway to install 20 additional turbines to regulate operations.
