Russia Moves to Criminalize Illegal Crypto Mining, Extends Restrictions to 13 Regions

Russia has introduced draft legislation in the State Duma that would make illegal cryptocurrency mining a criminal offense, according to Cryptopolitan. The bill proposes fines of up to 2 million rubles (about $25,000) and prison terms of up to five years for violations. Officials estimate roughly 50,000 individuals and organizations are currently mining, while fewer than 1,500 have completed registration. The government has also expanded mining restrictions to 13 regions, including the Republic of Buryatia and Zabaykalsky Krai in Siberia, with the ban slated to remain in effect through 2031. Separately, the energy minister for Moscow Oblast has suggested prohibiting mining in Moscow and the surrounding region, arguing local mining draws around 1 GW of electricity without delivering meaningful economic returns. Russia legalized cryptocurrency mining at the end of 2024, requiring operators to register with the Federal Tax Service and meet tax obligations.