New Regulation Set to Completely Transform Cryptocurrencies in Russia

Regulations for cryptocurrency mining are tightening in Russia. A new bill submitted to the Russian State Duma foresees high fines for illegal cryptocurrency mining activities and harsher penalties for repeated violations.

According to the bill, individuals mining without legal registration or permission will be fined between 100,000 and 150,000 rubles (approximately $1,230–$1,850). The fine for public officials will be between 300,000 and 800,000 rubles (approximately $3,700–$9,850). Legal entities (companies) will face fines ranging from 1,000,000 to 2,000,000 rubles (approximately $12,350–$24,700). These fines will be significantly higher for repeated violations.

The previously published draft details indicate that exceeding energy consumption limits or operating without registration in the legal miners’ registry will also be considered a separate violation. In this case, fines of 100,000–150,000 rubles (approximately 1,230–1,850 USD) are foreseen for individuals, while administrative fines ranging from 200,000–300,000 rubles (approximately 2,470–3,700 USD) are proposed for public officials, and 400,000–500,000 rubles (approximately 4,940–6,170 USD) for companies. In cases of repeated violations, these amounts will reach millions of rubles.

Energy Committee Chairman Nikolay Shulginov stated that the bill should be passed quickly, 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 the law comes into effect, mining activities will be divided into “legal” and “illegal” categories.

*This is not investment advice.