Russia backs fines for illegal crypto mining

Russia’s State Duma Energy Committee has supported a bill introducing fines for illegal crypto mining. The committee recommended that lawmakers approve the proposal in the first reading.

The legislation aims to regulate cryptocurrency mining and reduce the impact of unregistered mining operations on the national energy grid. If adopted, the bill could impose fines of up to 10 million rubles on companies violating mining regulations.

Committee backs bill introducing fines for crypto mining

The State Duma Energy Committee reviewed a draft law introducing administrative penalties for illegal crypto mining operations. After discussion, the committee recommended that the bill be approved in the first reading.

The draft legislation was submitted to parliament in January. It proposes fines for individuals, officials, and companies that violate cryptocurrency mining regulations.

The proposed penalties include:

• up to 150,000 rubles for individuals;
• up to 800,000 rubles for officials;
• up to 2 million rubles for companies.

Repeat violations by companies could lead to fines of up to 10 million rubles.

The bill also proposes penalties for exceeding electricity consumption limits without registering in the official tax registry.

Why authorities are tightening control over crypto mining

The crypto mining industry has grown rapidly in Russia in recent years. However, many mining operations remain outside formal regulatory frameworks.

Illegal mining facilities often consume large amounts of electricity. This creates additional pressure on regional power grids.

According to the committee, introducing penalties may help reduce unregistered mining activities.

The legislation aims to:

• reduce illegal mining operations;
• improve tax transparency;
• encourage legalization of cryptocurrency mining businesses.

These measures are also intended to increase tax revenue.

How new penalties could affect the mining industry

The committee also highlighted the need for additional restrictions on mining infrastructure placement.

Authorities are considering penalties for hosting mining equipment in data centers included in a special telecommunications registry.

In July 2025, Russia passed legislation prohibiting the placement of crypto mining equipment in data centers classified as telecommunications infrastructure.

If the new bill is adopted, regulatory pressure on the crypto mining industry in Russia may increase.

Prospects for legalizing cryptocurrency mining

Officials say the proposed legislation is part of a broader strategy to formalize economic activity and improve tax collection.

In December 2025, Russian President Vladimir Putin discussed economic transparency during a meeting of the Council for Strategic Development.

Lawmakers indicated that the effectiveness of the fines will be evaluated after implementation.

If the penalties prove insufficient, authorities may consider introducing criminal liability for illegal crypto mining in the future.

The proposal has already received support from the Ministry of Justice and the Ministry of Energy.

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