The Russian government is implementing a dual-track approach to cryptocurrency regulation, with the Constitutional Court strengthening property rights for crypto owners while lawmakers prepare to impose harsh penalties on illegal mining activities.
On the judicial front, the Constitutional Court of the Russian Federation has issued a landmark ruling that protects the rights of cryptocurrency owners to receive adequate judicial protection. The case was initiated by a Russian citizen, D.I. Timchenko, who sought the return of 1,000 Tether (USDT) he had transferred to an acquaintance for management. Lower courts had dismissed his claim based on his failure to notify the Federal Tax Service (FNS) of his crypto ownership, citing the federal law "On Digital Financial Assets."
Attorney Marat Amanliev, who represented the plaintiff, argued that making judicial protection conditional on a notification procedure was unconstitutional, especially since such a procedure hasn't been formally established. The Constitutional Court agreed, declaring the provision invalid. The court ruled that digital currency owners' rights are now equal to rights over any other property, and judicial protection will not be tied to notification or registration requirements.
A significant exception exists for cryptocurrency obtained through mining. The contested article continues to apply to coins produced by miners and mining infrastructure operators, who must still report holdings to tax authorities as established by existing law.
Marat Amanliev emphasized that "all claims by digital currency owners that have been dismissed for failing to notify government agencies of ownership will now be reviewed again." The court also stated that Russian legislation must classify all types of digital assets according to their specifics.
Simultaneously, the Russian State Duma is considering a new bill that would impose substantial fines for illegal cryptocurrency mining. The legislation proposes fines of 100,000–150,000 rubles (approximately $1,230–$1,850) for individuals mining without legal registration or permission. Public officials would face fines of 300,000–800,000 rubles ($3,700–$9,850), while legal entities could be fined 1,000,000–2,000,000 rubles ($12,350–$24,700). These penalties would increase significantly for repeated violations.
The bill also targets mining operations that exceed energy consumption limits or operate without registration in the legal miners' registry, with separate fines established for these violations. Energy Committee Chairman Nikolay Shulginov urged quick passage of the bill, noting that low electricity tariffs and existing legislation allow mining to be classified as a "domestic activity." Financial Markets Committee Chairman Anatoliy Aksakov explained that once enacted, mining would be divided into "legal" and "illegal" categories.
Looking forward, Russia's central bank has proposed a new regulatory concept that would define cryptocurrencies and stablecoins as "monetary assets" rather than just property for criminal proceedings. Lawmakers are expected to adopt this framework by July 1, 2026.
