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Russia Proposes Prison Terms for Illegal Crypto Mining in Draft Law

Officials cite energy strain alongside lost tax revenue to justify mandatory registration.

Overview

  • The Justice Ministry’s draft would criminalize unregistered mining with fines up to 1.5 million rubles and possible forced labor for up to two years.
  • Organized operations or activity yielding large profits could draw prison sentences of up to five years plus higher fines under the proposal.
  • Miners would be required to register and file monthly reports on digital currency output, with noncompliance potentially triggering criminal liability.
  • Household users consuming under 6,000 kWh per month would be exempt from registration but must pay personal income tax on mined coins.
  • The push aligns with tighter central bank rules for digital financial assets, including retail purchase caps and a plan to permit DFA issuance on public networks next year.