Russia is cracking down on unregistered cryptocurrency miners with a new draft bill proposing penalties of up to $19,000 and forced labor. Illegal mining could lead to five years in prison, 480 hours of forced labor, and a fine of up to $31,000 for outsized profits. Only 30% of miners are registered.

Miners in Russia must fill out a monthly tax form on their digital currency production. Only 30% of miners have legalized their operations, leaving many in the shadows. Physical person miners with monthly consumption under 6,000 kWh can mine without registration but must pay personal income tax on mined cryptocurrency.

There were 1,364 registered cryptocurrency miners in Russia as of October, according to the Minister of Finance. President Putin signed laws in 2024 providing a regulatory framework for mining, including compulsory registration and taxation forms. The law also restricts foreign entities from mining in Russia and allows the government to limit mining in certain regions.

Read more at Cointelegraph: Russian Draft Bill: Prison Unregistered Crypto Mining