Russia has proposed new criminal penalties targeting unregistered cryptocurrency miners operating outside the tax system.
The draft amendments were introduced by Russia’s Ministry of Justice and published earlier this week.
Officials said the proposal responds to widespread non-compliance within the domestic crypto mining sector.
Under the draft, illegal crypto mining could carry fines of up to 1.5 million rubles.
Offenders could also face up to two years of forced labour.
Authorities said harsher penalties would apply in cases involving large profits.
Mining activity deemed to have generated outsized gains could result in prison sentences of up to five years.
Such cases may also attract fines of up to 2.5 million rubles.
The draft includes provisions covering organised groups involved in illegal mining.
Organised mining operations could face forced labour or imprisonment for up to five years.
Officials said the measures aim to bring more miners into the formal economy.
The government requires miners to submit monthly tax declarations on digital currency production.