Russia's Ministry of Digital Development has proposed stringent new legislation aimed at combating unauthorized cryptocurrency mining across the country. If passed, the laws would empower courts to confiscate cryptocurrencies from illegal miners, whether individuals or corporate entities, and enforce heavy fines.
Key provisions include fines ranging from 100,000 to 200,000 rubles ($1,270 to $2,540) for individual miners operating without registration, with penalties potentially doubling for solo operators and officials. Companies running illegal mining farms could face fines between 1 and 2 million rubles ($12,730 to $25,455).
The legislation would also require mining infrastructure operators, such as data centers and hosting providers, to report their crypto mining activities and wallet addresses to Rosfinmonitoring, Russia’s anti-money laundering watchdog. Failure to comply could result in additional penalties, though specifics remain under review.
Unlike current law that permits unregistered home miners to operate under a 6,000 kWh monthly energy cap, about ten Russian regions already maintain tighter restrictions. The new rules would elevate serious mining violations from administrative offenses to criminal charges, potentially leading to criminal records for offenders. Furthermore, those with past convictions for economic crimes or terrorism would be prohibited from mining.
The Central Bank of Russia backs the proposal, viewing cryptocurrency asset confiscation as the strongest deterrent against unauthorized mining. Courts would thus gain the authority to seize digital coins from violators in both small unauthorized pools and large-scale industrial setups.
Additionally, use of crypto payments outside the Central Bank’s approved sandbox could incur fines up to one million rubles ($12,730). The laws are currently under interdepartmental review before being forwarded to lawmakers for approval.
This move aims to curb unauthorized crypto mining, which strains local energy grids and operates largely outside regulatory oversight, and to bring Russia's mining industry under firmer state control.