Russia Cracks Down on Cryptocurrency Mining with Stricter Penalties

Russia's government is taking a tougher stance on cryptocurrency mining by introducing draft legislation that would impose severe penalties on unregistered operations. According to estimates, nearly 50,000 miners are currently operating in the country, but only about 1,500 are registered with the Federal Tax Service.

The proposed law aims to curb informal activity in the sector, which was legalized in late 2024 under strict compliance requirements. The bill would introduce fines of up to 2 million rubles (approximately $25,000) and prison sentences of up to 5 years for violators.

Authorities are also expanding their mining ban, with new restrictions taking effect on April 1. Parts of Buryatia and Zabaykalsky Krai will now have a full prohibition on mining until March 2031, joining other regions already affected by the ban. The measures aim to alleviate energy constraints and protect local power grids.