Russia’s Ministry of Justice has put forward a draft that would criminalize unregistered cryptocurrency mining, citing more than 10 billion rubles in annual tax leakage and added strain on the national power grid. The package introduces tiered criminal exposure that scales with profit and alleged damage.
The proposal would amend both the Criminal Code and the Criminal Procedure Code, and it is currently open for public review on the official legal acts portal, signaling a tougher enforcement posture toward non-compliant operators.
What the draft would penalize
The draft lays out a base level of liability aimed at straightforward non-registration. Basic unregistered mining could trigger fines of 500,000 to 1.5 million rubles (about $5,000 to $15,000) or up to two years of forced labor.
A second tier is tied to higher proceeds or broader harm as framed by the authorities. If activity causes “significant damage” or generates more than 3.5 million rubles (about $35,000), the draft contemplates higher fines, compulsory labor up to 480 hours, or forced labor for up to two years.
The most severe tier is structured for scale and coordination. Aggravated cases, including organized operations or profits above 13.5 million rubles (about $135,000), could result in fines of 500,000 to 2.5 million rubles, forced labor up to five years, or imprisonment up to five years, potentially with additional fines.
In the Ministry’s framing, the intent is explicit. The draft targets operations that cause “significant damage” or generate “especially large” profits, aligning enforcement with the profit thresholds written into the tiers.
Why this matters operationally
This enforcement push follows Russia’s mining legalization in November 2024, which established a compliance path. That framework requires registration with tax authorities and subjects annual mining revenues to 13% to 15% taxation, but the draft argues many operators still remain outside the system.
For treasuries and institutional miners, the change is a material shift in downside scenarios, not just paperwork. Unregistered operators would face criminal and continuity risk that can cascade into asset seizures, personnel arrests, and facility shutdowns, with knock-on effects for local power availability and potential on-chain supply dynamics if miners relocate or exit.
On the risk-management side, the action items are practical and immediate. Operational treasuries should stress-test counterparty, hosting, and insurance arrangements in Russia and model what concentrated closures could mean for local hash rate and market liquidity, especially if enforcement accelerates during the review window.
The next milestone is procedural, but the market impact can front-run it. Participants will be watching the public review and any formal adoption steps, because approval would mark a clear pivot from permissive legalization toward strict enforcement and could accelerate consolidation or relocation decisions across the mining stack.