Cryptocurrency mining has always been in somewhat of a legal gray zone. However, as Russia's war costs are increasing and incomes decreasing, the country wants to tax cryptocurrency mining. To make this happen, Russia is preparing to move cryptocurrency mining from a regulatory gray zone into the core of its criminal law, with penalties ranging from fines to prison terms of up to five years. The draft legislation is expected in 2026, reports CNews.

The Ministry of Justice has proposed amendments to the Russian Criminal Code that introduces Article 171.6, which would establish liability for "unlawful mining of digital currency" and "illegal operation of mining IT infrastructure." The key trigger for criminal responsibility is not mining itself, but the presence of large-scale damage to citizens, organizations, or the state, or the extraction of income on a large scale. Mining conducted by individuals or entities not included in the Federal Tax Service register would fall under this provision if certain limits are met.

The Ministry of Justice has already published the draft amendments on the official legal acts portal and completion of the legal framework is expected by July 1, 2026. It is unclear when this bill becomes a law, but according to CNews, the illegal intermediary activity — which is set to be viewed as a form of illegal banking — will be prosecuted starting July 1, 2027.

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