Russia’s State Duma has passed a bill criminalizing illegal cryptocurrency mining in its first reading. The legislation would add Article 171.6 to the Criminal Code.

Miners and those providing mining infrastructure services would be required to register in special registries. Operating without registration while generating significant income or causing harm to others would be punishable by fines of up to 1.5 million rubles.

Organized groups or especially large-scale violations would face steeper penalties — fines of up to 2.5 million rubles or up to five years in prison.

The bill also provides for the seizure of assets obtained through illegal mining, though those who voluntarily compensate for damages could be exempt from criminal liability.

The government submitted the bill to the State Duma on March 31. In the explanatory note, the authors said that around 50,000 individuals and legal entities may be engaged in mining in Russia, while only 1,489 are included in the registry — making the case, they argued, for establishing criminal liability for illegal mining.