Russia Proposes Criminal Penalties for Illegal Cryptocurrency Mining

The Russian government has submitted a bill to the State Duma proposing criminal penalties for illegal cryptocurrency mining, with potential sentences of up to five years in prison and fines reaching 2.5 million rubles. According to ChainCatcher, approximately 50,000 individuals and entities are involved in mining activities in Russia, but fewer than 1,500 have completed registration. Simultaneously, Russia has extended its mining ban to the Republic of Buryatia and the Trans-Baikal Territory, effective until March 15, 2031. The mining prohibition now covers 13 regions, including Irkutsk, Donetsk, Luhansk, Zaporizhzhia, Kherson, and several republics in the North Caucasus. The Moscow Region's Energy Minister has suggested banning mining in Moscow and the surrounding region to alleviate the strain on the power grid. Despite being one of the top three global destinations for Bitcoin mining, the Russian government is prioritizing the use of computing power for artificial intelligence applications.