Russia Submits Bill to Criminalize Illegal Crypto Mining With Fines and Jail Terms

The bill submitted to the State Duma would raise penalties for illegal crypto mining, while regional mining bans in Buryatia and Zabaykalsky Krai have been extended through March 15, 2031.

Summary

Russia has submitted a bill to the State Duma that would impose tougher penalties for illegal crypto mining, including fines of up to 2.5 million rubles and prison terms of up to five years. The proposal targets a market where fewer than 1,500 miners are registered out of an estimated 50,000 participants, underscoring a wide compliance gap. The update also states that mining bans in Buryatia and Zabaykalsky Krai have been extended through March 15, 2031, adding to Russia’s broader restrictions on crypto mining activity in certain regions.

Terms & Concepts
  • Crypto mining: The process of using computing power to validate blockchain transactions and typically earn newly issued digital assets or transaction fees.
  • State Duma: Russia’s lower house of parliament, where federal legislation is introduced and considered.
  • Blockchain: A distributed digital ledger that records transactions across a network in a tamper-resistant manner.