Russia's State Duma criminalizes illegal crypto mining with up to 5 years in prison

Russia's State Duma has passed a bill on first reading that would make illegal cryptocurrency mining a criminal offence. The legislation proposes adding Article 171.6 to the Criminal Code, with penalties ranging from fines to up to five years in prison.

Russia's lower house of parliament, the State Duma, has approved a bill in its first reading that would criminalize illegal cryptocurrency mining, introducing penalties including fines and imprisonment of up to five years.

The proposed legislation would add Article 171.6 to Russia's Criminal Code, establishing a new legal framework targeting unlicensed or otherwise unauthorized crypto mining operations. The bill passed its initial reading, meaning it still needs to clear further legislative stages before becoming law.

Russia has been a significant player in global cryptocurrency mining due to its vast energy resources and cold climate, but authorities have increasingly sought to regulate the sector. This bill represents one of the most aggressive legal moves yet, shifting the state's approach from regulation toward outright criminalization of unauthorized activity.

The move reflects a broader tightening of digital financial controls in Russia, as the government attempts to manage energy consumption, tax revenues, and capital flows linked to the crypto industry. Critics and industry observers will be watching closely as the bill progresses through subsequent readings.