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- Russia is moving ahead with its crypto mining initiatives and is working simultaneously to work on illegal operations.
- Authorities are preparing to regulate crypto trading on major stock exchanges by July 2026.
In the latest development, the Russian Ministry of Justice has proposed bringing criminal penalties for illegal crypto mining activities. These fines could include cash penalties of 1.5 million rubles, forced labour, and even five year prison term in extreme cases. The latest proposal comes just as the Asian country moves ahead with supporting Bitcoin mining operations.
Russia Takes Charge of Illegal Crypto Mining
Russia’s regulatory portal shows the amendments to the Criminal Code and Criminal Procedure Code. As per the proposal, the changes include adding a new rule, Article 171.6, dubbed “Illegal mining of digital currency and activities of a mining infrastructure operator.”
Under the draft, individuals conducting digital currency mining without being listed in the official registry could face fines of up to 1.5 million rubles, compulsory labor of up to 480 hours, or forced labor for up to two years. Criminal charges would apply if the activity caused significant damage to citizens, organizations, or the state, or generated large-scale income, defined as more than 3.5 million rubles.
However, the scale of penalties will increase for those committed by an organized group. Those groups that cause large-scale damage worth 13.5 million rubles or more would face even greater penalties. The draft mentions penalties in the range of 500,000 to 2.5 million rubles, forced labor for up to five years, or imprisonment for up to five years. This could come on top of additional fines included.
The Changing Crypto Landscape
Russia’s crypto landscape is taking a major shift with a greater push for Bitcoin mining. Earlier this month, Russian President Vladimir Putin said that they are in discussions with the United States over the joint management of the Zaporizhzhia Nuclear Power Plant. As per the reports, the talks include the potential use of the facility’s electricity output to support Bitcoin mining operations.
Furthermore, as cryptocurrencies continue to gain mainstream traction, regulators are also preparing with their rules and laws. Russia’s major stock exchanges are moving toward the launch of regulated cryptocurrency trading after the Central Bank of Russia unveiled a new digital asset policy framework. The proposed regime will replace the current legal structure and will come into force by July 1, 2026. This happens only after the approval by federal authorities and the national parliament.
Furthermore, Russia’s Sberbank is working to offer the country’s first crypto-backed loan. The borrower is Intelion Data, one of Russia’s largest Bitcoin mining operators. Sberbank did not disclose the size of the loan.
