The State Duma passed a bill criminalizing illegal cryptocurrency mining on its first reading

On May 27, 2026, the State Duma passed Bill No. 11993193-8, “On Amendments to the Criminal Code of the Russian Federation and the Criminal Procedure Code of the Russian Federation,” in its first reading.

The bill proposes introducing a new Article 171.6 into the Criminal Code of the Russian Federation, titled “Illegal Mining of Digital Currency or Activities of a Mining Infrastructure Operator.”

Part 1 of the aforementioned article provides for criminal liability for:

1. conducting mining without being included in the register of persons engaged in digital currency mining; or
2. providing the services of a mining infrastructure operator without being included in the register of mining infrastructure operators, if these acts caused significant (over 3.5 million rubles) damage to citizens, organizations, or the state, or are associated with the generation of significant income.

The offense is punishable by a fine of up to 1,500,000 rubles or in the amount of the convicted person’s income for a period of up to 2 years; community service of up to 480 hours; or forced labor for up to 2 years.

Part 2 of the aforementioned article provides for the “aggravated form” of the same offense:

1. commission of the offense by an organized group;
2. causing particularly large-scale damage (over 13.5 million rubles) or deriving particularly large-scale income.

The punishment for committing the aggravated form of the offense is more severe: a fine ranging from 500,000 to 2,500,000 rubles or the convicted person’s income for a period of 1 to 3 years; forced labor for up to 5 years; imprisonment for up to 5 years with a fine of up to 400,000 rubles (or without such a fine).

In addition, the court may order the confiscation of assets from a person convicted under this article and transfer them to the state, such as mined digital currency, proceeds from the sale of digital currency, and mining equipment—the relevant amendments have been made to Article 104.1 of the Criminal Code of the Russian Federation.

Compensation for damages may serve as grounds for exemption from liability under this article (Article 76.1 of the Criminal Code of the Russian Federation).

According to amendments to the Criminal Procedure Code of the Russian Federation, under Part 1 of Article 171.6, a preliminary investigation is conducted in the form of an inquiry by investigators of the Ministry of Internal Affairs, and under Part 2, in the form of a preliminary investigation by investigators of the Ministry of Internal Affairs.

As noted in the explanatory memorandum, according to the Federal Tax Service (FTS), only 1,489 mining entities comply with legal requirements and are included in the FTS registries, while the actual number of participants in the relevant market is approximately 50,000 individuals and legal entities. This, in the opinion of the bill’s sponsor (the Government of the Russian Federation), makes the introduction of criminal liability for illegal mining a pressing issue.