Unregistered Bitcoin Mining In Russia May Soon Come With Up To Two Years Of Forced Labor

"Russia is preparing to escalate its crackdown on unregistered cryptocurrency mining, proposing criminal penalties that include forced labor and prison sentences, little more than a year after formally legalizing the industry. The Ministry of Justice on Monday published draft amendments to the Criminal Code that would reclassify many forms of illegal crypto mining from an administrative offense into a criminal one."

"Although mining was legalized to bring the fast-growing sector out of the shadows, authorities say most operators continue to avoid registration and taxation. Deputy Finance Minister Ivan Chebeskov said in June that only about 30% of miners had registered with the Federal Tax Service, leaving the majority operating in what officials describe as a "gray zone." Under the draft law, individuals who mine cryptocurrency without proper registration could face fines ranging from 500,000 to 1.5 million rubles, or up to two years of forced labor."

"Harsher penalties are reserved for large-scale or organized operations. Mining that generates "significant" or "especially large" income, or that involves coordinated groups, could result in fines of up to 2.5 million rubles, forced labor for up to five years, or prison sentences of similar length. Equipment confiscation and additional financial penalties would remain possible."

Russia is moving to criminalize unregistered cryptocurrency mining by proposing amendments that reclassify many illegal mining activities from administrative offenses to criminal ones. Authorities cite widespread noncompliance after the 2024 legalization and regulatory framework, with only about 30% of miners registered and taxed. The draft law would impose substantial fines, forced labor, and possible prison terms for unregistered individual miners, and harsher penalties—including larger fines, up to five years' forced labor or imprisonment, and equipment confiscation—for organized or large-scale operations. Existing distinctions for private miners consuming under 6,000 kWh per month and tax obligations for mined income would remain.

Read at Bitcoin Magazine