Russia proposes jail and hard labour for illegal Bitcoin mining

Russia’s Justice Ministry has proposed harsh new penalties for illegal Bitcoin mining, including jail time and forced labour.

The draft amendment would allow courts to sentence offenders to up to five years in prison.

The ministry also proposed fines of up to $19,000 for individual illegal miners.

Organised groups involved in illegal mining could face fines of up to $32,000.

The Justice Ministry said penalties would be most severe if mining caused major damage or generated large-scale income.

Illegal miners have been blamed for power shortages in major mining regions including Irkutsk and the North Caucasus.

Lawmakers said existing penalties have been ineffective, with offenders often only fined for improper electricity use.

The amendment would formally criminalise illegal crypto mining under Russia’s criminal code.

Current rules allow crypto mining in most regions if electricity use stays below 6,000 kWh per month.

Miners exceeding that limit are required to register with the Federal Tax Service.

Authorities estimate registered industrial miners pay more than $600m in annual taxes.

Officials said illegal mining has evolved into a sophisticated shadow industry.

Some miners reportedly use mobile units in vans or shipping containers to avoid detection.

Judges would also be able to impose forced labour sentences of up to two years or community service of up to 480 hours.

At the time of reporting, Bitcoin price was $87,522.63.