Ministry of Justice Drafts Article 171.6 to Crush Unregistered Operations
Russia is closing the net on its shadow crypto economy. The Ministry of Justice has published draft amendments to the Criminal Code that would punish unregistered cryptocurrency mining with fines of up to 1.5 million rubles (~$15,000) and prison sentences of up to five years. The proposal, reported by Interfax and published on the government’s official legal portal, marks a decisive shift from administrative slaps on the wrist to felony-level enforcement.
The Discrepancy: While Bitcoin ($87,830, -0.2%) shrugged off the news, the legislative move targets a specific inefficiency in the Russian grid: “grey” miners who consume subsidized household electricity for industrial-scale profits. The market’s indifference suggests institutional capital views this as a consolidation event favoring large, tax-paying entities rather than a ban.
The Receipt: Article 171.6
The draft introduces a new provision, Article 171.6, specifically targeting “Illegal mining of digital currency and activities of a mining infrastructure operator.” The tiered penalty structure is designed to bankrupt small-time offenders and imprison organized rings:
- Basic Offense: Fines up to 1.5 million rubles, wage garnishment for up to three years, or forced labor for up to two years.
- Aggravated Offense: For operations generating “particularly large” income (defined as exceeding 13.5 million rubles) or involving organized groups, the penalty escalates to five years in prison.
“The initiative targets implementation in 2026… targeting unregistered operations to combat electricity theft and grid strain in regions like Siberia.”. Crypto Times Report
Institutional Context
This crackdown is the enforcement arm of the legalization framework that took effect on November 1, 2024. Since that date, over 1,000 legal entities have registered with the Federal Tax Service (FNS). The state’s strategy is clear: legitimize the industrial players who can stabilize the grid and pay the 15% tax on mining profits, while eliminating the unregistered “garage miners” who jeopardize regional energy security.
