Russian Duma Considers Bill on Illegal Cryptocurrency Mining Penalties

The Russian State Duma's State Building and Legislation Committee has recommended the first reading of a government-submitted bill addressing criminal liability for illegal cryptocurrency mining. According to ChainCatcher, the proposed legislation introduces Article 171.6 to the Criminal Code, targeting unauthorized digital asset mining and unlicensed mining infrastructure operations not registered with the state. Penalties will vary based on the severity of the offense. For cases where income or damages exceed 3.5 million rubles, fines could reach up to 1.5 million rubles or two years' income, with the possibility of up to two years of compulsory labor. For organized groups or cases where income exceeds 13 million rubles, fines could rise to 2.5 million rubles or three years' income, with compulsory labor or imprisonment of up to five years, and an additional fine of up to 400,000 rubles or six months' income. In all instances, confiscation of mined cryptocurrency is mandated. The government estimates that approximately 50,000 entities are involved in mining activities in Russia, but only 1,489 (609 legal entities and 880 individual entrepreneurs) are registered with the state.