Russia has submitted a bill to tackle illegal cryptocurrency miners in its region. According to a new draft of amendments to the Criminal Code, published on Monday, Russia intends to bring all digital asset miners in the country under its tax law.
With the new regulation, Russia aims to curb illegal crypto mining by introducing strict punishments. Recently, the country’s Deputy Finance Minister, Ivan Chebeskov bemoaned the low compliance of crypto miners to legalize their operations.
Furthermore, Chebeskov said as of the first half of 2025, only 30% of virtual assets miners operating in the country are registered. As per the minister, Russia introduced mining regulations to the sector in a bid to bring it out of the shadows.
In response to the poor compliance effort, the country’s Ministry of Justice has imposed a penalty of $19,000 and up to two years of forced labor. Additionally, the draft bill includes a maximum sentence of up to five years in prison, 480 hours of forced labor, and a fine of up to $32,000 for illegal crypto mining activities with huge returns.
Russia focuses on crypto mining to raise revenue
With the bill, Russia aims to capitalize on the growth of digital assets mining and usage in the country to grow its revenue. Currently, the country requires miners to complete a monthly tax form to report the amount of digital assets they mined within that period.
However, miners with monthly consumption of energy below 6,000 kWh are not part of the process because there is a permission that allows them to mine without registering with the Federal Tax Register. Nevertheless, they are mandated to pay a personal income tax on the mined digital assets.
Recall that in August 2024, Russian President Vladimir Putin signed a new law that established a regulatory regime for digital assets mining. Effective from November 1, 2024, the bill mandated registration and tax reporting from cryptocurrency miners.
The law also prevented companies and individuals from mining in Russia. More so, the regulation allowed Russia to restrict crypto mining in some areas, causing serious backlash from the public who demanded allowing miners to operate anywhere in the country.
Binbits reported that affected areas include Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Zaporizhzhia, Kherson Donetsk, and Lugansk.