Russia Targets 50K Crypto Miners with Harsh Penalties, Expands Ban

* Proposed fines and prison time for unregistered crypto miners. * Year-round mining ban expanded to 13 territories amid energy concerns. On April 1, 2026, reports revealed a Russian crackdown on an estimated 50,000 illegal crypto miners, who now face expanded bans and penalties that include prison time. The Russian government has proposed new legislation to clamp down on unauthorized cryptocurrency mining. According to reports from Bitget News and Cryptopolitan on April 1, a draft law submitted to the State Duma imposes severe penalties for unregistered operations, including fines up to 2 million rubles (approximately $25,000) and prison sentences up to five years. The law also recommends harsher punishments for organized mining activities or for operations that cause significant financial losses. Authorities have also broadened the prohibition on cryptocurrency mining to two more Siberian regions, the Republic of Buryatia and Zabaykalsky Krai, raising the total number of restricted territories to 13. The year-round mining ban now applies in areas including the Irkutsk region, parts of the Caucasus, and regions in occupied Eastern Ukraine. These steps aim to combat illegal operations while addressing concerns over energy consumption and infrastructure strain. Russia formally legalized cryptocurrency in late 2024 and has since intensified its regulation of the industry. Although miners must register with the Federal Tax Service, compliance remains low. Out of an estimated 50,000 individuals and entities engaged in crypto mining, fewer than 1,500 have registered. Consequently, the proposed law seeks to bridge this significant compliance gap. This regulatory push aligns with Russia’s broader effort to direct energy and computing resources toward advancing artificial intelligence initiatives, which indicates a shift in national priorities. Russia ranks among the top three global Bitcoin mining countries by hashrate. However, some officials, including the energy minister of the Moscow Oblast, suggest that banning mining entirely in select regions could alleviate power grid stress and better support AI development. According to market data, Bitcoin (BTC) was trading at $68,175.47 as of April 1, 2026, at 23:08 UTC. Its 24-hour trading volume decreased by 0.032%.