Russia's Crackdown on Illegal Crypto Mining Sparks Public Backlash
Russia's State Duma Energy Committee has approved a new draft law targeting illegal cryptocurrency mining. The legislation introduces steep fines and penalties for those breaking the rules. Public opinion on the bill has shifted sharply since its introduction in late 2024.
The proposed law sets fines for unauthorised crypto mining between 100,000 and 10 million rubles. The exact amount depends on the offender's status and the severity of the violation. Individuals mining in banned regions could pay 100,000 to 150,000 rubles, while legal entities face penalties of 1 to 2 million rubles for the same offence.
Unauthorised mining without proper licensing and illegal operations by infrastructure providers carry identical fines. Repeat offenders risk even harsher consequences. Legal entities may see penalties rise to 10 million rubles, while officials and self-employed entrepreneurs could be fined 300,000 to 800,000 rubles.
The bill also targets those who fail to report crypto holdings and wallet addresses to the Federal Tax Service. Fines for this offence range from 100,000 to 500,000 rubles. Officials and self-employed entrepreneurs may additionally face disqualification for one to two years, while businesses could be suspended for up to 90 days for repeat violations.
The committee expanded the draft to include liability for placing mining equipment in data centres listed in the official registry. This amendment aims to close loopholes in enforcement.
Public reaction to the bill has changed dramatically since its introduction. Initially, pro-government voices supported it as a way to curb energy misuse and speculation. By mid-2025, however, tech professionals and the general public began criticising the measures as overly restrictive. Polls conducted in early 2026 showed 62% of Russians and 78% of tech workers viewed the law negatively, fearing economic isolation. Protests in Moscow and St. Petersburg reflected growing demands for lighter regulations.
The new penalties mark a stricter approach to crypto mining in Russia. If passed, the law will impose significant financial burdens on violators and potentially disrupt operations for repeat offenders. The shift in public sentiment suggests broader concerns about the economic and innovative impact of these regulations.
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