Russian lawmakers have introduced a bill proposing substantial administrative fines for illegal cryptocurrency mining operations. The penalties could reach up to 10 million rubles, equivalent to approximately $129,000, for repeat corporate offenders. This legislative move comes amid claims that illegal mining activities are causing annual tax losses estimated at $100 million.
The proposed legislation specifically targets mining operations conducted in regions where the government has imposed bans, as well as unregistered miners who exceed established energy consumption limits. The bill was submitted to Russia's State Duma, the lower house of parliament, by deputies Anatoly Aksakov, Nikolai Shulginov, Vasily Piskarev, and Sergey Pakhomov.
Legislative Proposal Details
The bill outlines a tiered fine structure for individuals operating illegal mining facilities. First-time offenders could face penalties ranging from 100,000 to 150,000 rubles ($1,000 to $1,500). These fines would escalate significantly for repeat violations, reaching between 1 and 1.5 million rubles ($10,000 to $15,000).
For corporate entities, the proposed fines are considerably steeper. Initial penalties would range from 1 to 2 million rubles, with subsequent infractions incurring fines of 5 to 10 million rubles. Mining infrastructure operators that provide access to unregistered miners could also face penalties, starting up to 500,000 rubles and reaching 5 million rubles for repeat offenses.
The legislation also includes distinct penalties for miners who surpass government-set energy consumption thresholds or who operate without being registered in the official mining registry.
Economic and Security Implications
Anatoly Aksakov, who chairs the State Duma Financial Market Committee, stated that illegal mining activities are costing Russia's economy over 10 billion rubles ($100 million) annually. He also noted that an additional 9 billion rubles in taxes are not being collected due to these operations.
Nikolai Shulginov, head of the State Duma Energy Committee, highlighted concerns that current laws are being exploited by individuals to disguise large-scale commercial mining operations as ordinary household electricity consumption. He warned that the low electricity tariffs available in Russia make mining profitable but simultaneously threaten the stability of the energy system, leading to power deficits and accelerated deterioration of infrastructure.
This proposed bill follows Russia's legalization of cryptocurrency mining in November 2024, which introduced a registry system requiring miners to report their monthly activities to tax authorities. Prior to this, Russia's Ministry of Justice had suggested criminal penalties, including fines up to 1.5 million rubles or up to two years of forced labor, and prison sentences of up to five years for organized groups involved in highly profitable illegal mining.
According to Aksakov, the legislation is intended to create a clear distinction between legal and illegal mining markets. He anticipates that illegal operations will eventually be categorized into "grey" and "black" market segments.
Russia's Role in Global Crypto Mining
In 2025, Russia held the position of the world's second-largest cryptocurrency mining nation, contributing approximately 15% to 18% of the global Bitcoin hashrate. The United States remains the largest contributor. Despite its significant mining capacity, the country has implemented seasonal and year-round mining bans in several regions, including parts of Siberia's Irkutsk Oblast, primarily due to concerns about the strain on energy grids.
Government data indicates that mining operations generated approximately 10 billion rubles in tax revenue during 2023, underscoring the economic significance of the sector.