Cryptocurrency Mining Regulation in Russia: A Comprehensive Legal Guide

 

August 14, 2025

BRACE Law Firm ©

 

In simple terms, digital currency mining is the process of obtaining such currency using specialized equipment and software. Currently, a specific law and specialized regulatory legal acts govern digital currency mining in Russia.

This article examines the legal regulation of digital currency and its mining in Russia, the requirements for mining participants, and the prohibitions and restrictions currently in effect regarding mining.

What is Cryptocurrency Mining?

Legal literature suggests that mining constitutes an entrepreneurial activity, as "mining" should be understood as activity aimed at obtaining cryptocurrency. Since mining results in obtaining cryptocurrency — i.e., profit in the form of remuneration for actions in an information system — it should be qualified as an entrepreneurial activity. Experts in other fields also consider mining to be a process using cryptographic tools to extract cryptocurrency (digital financial assets), for which miners receive remuneration. [1]

The primary law regulating mining in Russia is Federal Law No. 259-FZ dated July 31, 2020, On Digital Financial Assets, Digital Currency and on Amending Certain Legislative Acts of the Russian Federation (the "CFA Law" or the "Law on Digital Financial Assets and Digital Currency").

This law does not use the term "cryptocurrency", but rather "digital currency". The characteristics distinguishing digital currency from cryptocurrency include:

• Centralization, as the state does not control the issuance of cryptocurrency.
• Lack of anonymity. To mine and use digital currency, one must undergo identification. Such actions are not required for cryptocurrency. Cryptocurrency cannot ensure full anonymity either, as transactions are recorded and tracked.
• Lack of transparency, as digital currency is opaque; one cannot view information about the money transfers of others by their wallet address. Cryptocurrency is transparent, as user transactions are recorded in a public blockchain.

Article 1 of the CFA Law defines "digital currency" as a set of electronic data (digital code or designation) contained in an information system that is offered and (or) can be accepted as a means of payment that is not a Russian monetary unit, a monetary unit of a foreign state, and (or) an international monetary or settlement unit, and (or) as an investment, in respect of which there is no person obligated to every holder of such electronic data, except for the operator and (or) nodes of the information system obligated only to ensure that the procedure for issuing these electronic data and performing actions to enter (amend) records in such an information system complies with its rules.

The same Article also defines "digital currency mining" as activity involving mathematical calculations through the operation of technical and hardware-software tools to enter records into an information system using technology, including distributed ledger technology, aimed at issuing digital currency and (or) receiving remuneration in digital currency for confirming records in the information system by the person performing such activity.

Who is Entitled to Engage in Digital Currency Mining?

In Russia, individual entrepreneurs, Russian legal entities, and, subject to certain restrictions, citizens are entitled to engage in digital currency mining. Below are the conditions under which persons may conduct cryptocurrency mining.

Individual entrepreneurs and Russian legal entities may engage in digital currency mining (including participation in a mining pool) from the moment they are included in the register of persons engaged in digital currency mining. Data entered into the register are not subject to publication in the media or placement on the Internet. [2]

Russian citizens who are not individual entrepreneurs may engage in digital currency mining (including participation in a mining pool) without being included in the register of persons engaged in digital currency mining, provided that the energy consumed during such activity does not exceed energy consumption limits established at 6,000 kilowatt-hours per month. [3] The CFA Law does not establish an express prohibition on digital currency mining by foreign citizens. The prohibition on exceeding energy consumption limits also applies to them.

In case No. A45-31114/2023, the court noted that a grid organization, during an inspection of a private residential building, established interference with a metering device to understate electricity consumption data. Additional load of 20 kW (with an authorized 15 kW) was discovered in the residential building in the form of cryptocurrency mining equipment consisting of approximately 100 devices. According to the grid organization's calculation, with round-the-clock electricity consumption at a load of 20.6 kW, the monthly consumption equals 14,832 kWh. For the period from March 14, 2023, to August 16, 2023, the volume of unmetered consumption according to the report was 235,699 kWh, whereas, according to the submitted meter readings, the consumer's consumption was 803 kWh in June 2023, 717 kWh in July 2023, and 345 kWh in August 2023. [4]

The courts concluded that there was "proof of the fact of unmetered electricity consumption, expressed in interference with the operation of metering devices through external influence leading to under-accounting of energy. Furthermore, mining equipment consisting of 100 video cards with a consumption volume of 57,600 kWh operated on the territory of the residential building in question; therefore, this volume of electricity consumption must be paid at the tariff for other consumers, rather than the tariff for the population".[5]

Individual entrepreneurs who have an outstanding or unsatisfied criminal record for economic crimes, crimes against state power, or for intentional medium-gravity, grave, or especially grave crimes, or who are included in the list of organizations and individuals suspected of involvement in extremist activity or terrorism, the lists of organizations and individuals associated with terrorist organizations and terrorists or with the proliferation of weapons of mass destruction, or in respect of whom a decision has been made to freeze (block) funds or other property, cannot engage in digital currency mining (including as participants in a mining pool). This also applies to legal entities if they themselves or their founders (participants), beneficial owners, or sole executive body do not meet business reputation requirements.

Legal entities and individual entrepreneurs are also prohibited from combining digital currency mining with electricity transmission activities, operational-dispatch management activities in the power industry, or electricity production or purchase and sale activities.[6]

Issuance and Circulation of Cryptocurrency

Article 14 of the CFA Law regulates the circulation of digital currency. "Organization of digital currency issuance" is defined as activity involving the provision of services aimed at ensuring the issuance of digital currency using domain names and network addresses located in the Russian national domain zone, and (or) information systems with technical means located in Russian territory, and (or) hardware-software complexes located in Russian territory.

"Digital currency issuance" means actions using Russian information infrastructure objects and (or) user equipment aimed at providing third parties with the capability to use digital currency.

"Organization of digital currency circulation" means activity involving the provision of services aimed at ensuring the performance of civil law transactions and (or) operations resulting in the transfer of digital currency from one holder to another using Russian information infrastructure objects.

Russian legal entities, branches, representative offices, and other separate subdivisions of international organizations and foreign legal entities, companies, and other corporate formations possessing civil capacity created in Russia, and individuals actually located in Russia for at least 183 days within 12 consecutive months, are not entitled to accept digital currency as consideration for goods transferred by them (to them), works performed by them (for them), services rendered by them (to them), or in any other way allowing for the assumption of payment in digital currency for goods (works, services), except for receiving digital currency as a result of digital currency issuance and (or) receiving remuneration in digital currency for confirming records in an information system by a person engaged in digital currency mining (including a participant in a mining pool) or a person organizing mining pool activities (including as a result of distributing digital currency among mining pool participants).

The claims of such persons related to the possession of digital currency are subject to judicial protection only if they have reported the facts of possessing digital currency and performing civil law transactions and (or) operations with digital currency in the manner established by legislation on taxes and fees.

The distribution of information regarding the offer and (or) acceptance of digital currency as consideration for goods transferred by them (to them), works performed by them (for them), services rendered by them (to them), or any other way allowing for the assumption of payment in digital currency for goods (works, services) is prohibited in Russia. Offering digital currency, as well as goods (works, services) for the purpose of organizing the circulation and (or) the circulation of digital currency to an indefinite circle of persons is also prohibited.

The accounting of credit and debit operations with digital currency in an information system is performed by means of a unique sequence of characters called an "address-identifier". The address-identifier is provided (opened) to federal executive authorities, prosecution authorities, inquiry and preliminary investigation authorities, and authorities performing operational-investigative activities for the performance of tasks assigned to the respective authorities upon their requests. [7]

Taxes on Digital Currency Mining

With respect to corporate income tax, income in the form of digital currency received from mining is recorded as non-operating income on the date the right to dispose of it arises (Articles 250, 271 of the Tax Code of the Russian Federation (the "Tax Code")). Expenses related to mining are recorded as indirect expenses regardless of their composition (Article 282.3 of the Tax Code).

The tax base for digital currency operations is calculated separately from other bases, except for cases where income and expenses from such operations (other than mining) must be included in the general tax base for corporate income tax. Such a necessity may arise if settlements in digital currency are performed for obligations in foreign trade transactions within an experimental legal regime in the sphere of digital innovations (Article 282.3 of the Tax Code).

The tax base for mining will be the market quotation of the received digital currency on the day the right to dispose of it arose (Articles 271, 282.3 of the Tax Code). The market quotation of digital currency is defined as the closing price calculated by a foreign trade organizer (including an exchange) for transactions performed through it during a trading day. A foreign trade organizer (including an exchange) may be a person whose trading volume for digital currency transactions exceeds 100 billion rubles for the respective trading day, provided that information on digital currency market quotations has been placed on its official website for three years preceding the date of the digital currency operations.

Income (revenue) from the sale of digital currency is determined based on the actual sale price of such digital currency, but not lower than the market quotation of such digital currency reduced by 20%. When acquiring digital currency, its value is determined based on the purchase price, but not higher than the market quotation of the digital currency increased by 20 percent.

Upon the sale or other disposal of digital currency, the taxpayer independently, in accordance with the accounting policy adopted for taxation purposes, chooses one of the following methods for writing off the cost of the disposed digital currency:

• at the cost of the first acquisition in time (FIFO);
• at the cost of a unit (Article 282.3 of the Tax Code).

Organizations and individual entrepreneurs engaged in digital currency mining are not entitled to switch to the payment of the unified agricultural tax, nor are they entitled to apply the simplified tax system (Articles 346.2, 346.12 of the Tax Code). The patent tax system does not apply to digital currency mining or transactions for the sale (acquisition) of digital currency (Article 346.43 of the Tax Code).

Individuals who receive income from digital currency operations pay PIT on such income. This applies to income from mining, acquisition, sale, and other disposal of digital currency (Article 210 of the Tax Code).

When receiving digital currency as a gift, tax must also be paid, except for cases where the donor is a family member or close relative. Tax does not need to be paid if cryptocurrency is received through inheritance (Article 217 of the Tax Code).

Income in the form of digital currency is considered income in kind. The value of such currency is determined based on its market quotation on the date the income was actually received (Article 211 of the Tax Code). This date is considered the day the right to dispose of the digital currency arose (Article 223 of the Tax Code).

Mining income is included in the set of tax bases taxed at the main progressive rate depending on the amount of income (13, 15, 18, 20, 22%). This set of bases includes most individual income, including salary and other income forming the main tax base (Articles 210, 224, 225 of the Tax Code).

It is possible to reduce mining income by a property deduction in the amount of expenses related to such activity. Expenses must be supported by documentation. For example, payment documents for the purchase of equipment or payment for electricity can be submitted (Article 210, Article 220 of the Tax Code).

In Which Cases is Cryptocurrency Mining Prohibited?

In accordance with Article 14 of the CFA Law, the Russian Government is entitled to establish a prohibition on digital currency mining (including participation in a mining pool) in certain Russian constituent entities or in certain of their territories in the event of an existing and (or) projected shortage of electricity and (or) capacity, including if they are categorized as territories of technologically necessary generation, or upon the request of the highest official or chairman of the highest executive body of a Russian constituent entity.

The rules for establishing a prohibition are set by Decree of the Government of Russia No. 1468 dated November 1, 2024, On Approving the Rules for Establishing a Prohibition on Digital Currency Mining (Including Participation in a Mining Pool) in Certain Constituent Entities of the Russian Federation or in Certain of Their Territories.

According to these rules, the prohibition on digital currency mining (including participation in a mining pool) does not apply to certain territories of Russian constituent entities for which confirmations have been received from the organization managing the unified national (all-Russian) electric grid, the system-forming territorial grid organization, as well as from the system operator of Russian electric power systems regarding the lack of technological connection of power-receiving devices located therein, using which digital currency mining (including participation in a mining pool) is performed, and power industry objects from which the electricity supply of such power-receiving devices is performed, to electric grids within the Unified Energy System of Russia and technologically isolated territorial electric power systems.

These confirmations are issued upon the request of a person planning to engage in digital currency mining (including participation in a mining pool) in the specified territories and included in the register of persons engaged in digital currency mining (including participation in a mining pool).

The decision to establish a prohibition on digital currency mining (including participation in a mining pool) in certain constituent entities or in certain of their territories is made based on proposals from the Government Commission on Electric Power Industry Development and must contain the following information:

• a list of certain constituent entities and (or) certain of their territories in which and (or) on which the prohibition is established, specifying the name of the constituent entity (names of constituent entities) and the names of the corresponding municipal formations;
• the date the prohibition is introduced;
• the term for which the prohibition is introduced. [8]

Currently, a prohibition on digital currency mining (including participation in a mining pool) is established in the following constituent entities and territories:

• in certain districts of the Irkutsk Region from April 7, 2025, to March 15, 2031;
• in certain districts of the Republic of Buryatia and the Zabaykalsky Krai from January 1, 2025, to March 15, 2025; from November 15, 2025, to March 15, 2026; from November 15, 2026, to March 15, 2027; from November 15, 2027, to March 15, 2028; from November 15, 2028, to March 15, 2029; from November 15, 2029, to March 15, 2030; and from November 15, 2030, to March 15, 2031;
• in the Republic of Dagestan, the Donetsk People's Republic, the Republic of Ingushetia, the Kabardino-Balkarian Republic, the Karachay-Cherkess Republic, the Luhansk People's Republic, the Republic of North Ossetia – Alania, the Chechen Republic, the Zaporozhye Region, and the Kherson Region from January 1, 2025, to March 15, 2031. [9]

What is a Mining Pool?

A "mining pool" is defined as an association of the capacities of several technical and hardware-software tools belonging to different owners ("mining pool participants") and used for digital currency mining, resulting in the distribution of the issued (obtained) digital currency among the mining pool participants.

A "person organizing mining pool activity" is defined as a person providing services to mining pool participants to combine the capacities of several technical and hardware-software tools used for digital currency mining, resulting in the distribution of the issued (obtained) digital currency among the mining pool participants by such person. Such a person may simultaneously engage in digital currency mining.

A person organizing mining pool activity can be a Russian legal entity, individual entrepreneurs, or Russian citizens who are not individual entrepreneurs, who must meet the requirements for persons engaged in digital currency mining.

Control (oversight) of compliance with the requirements is performed by FTS Russia.

Register of Persons Engaged in Digital Currency Mining

Data entered into the register of persons engaged in digital currency mining are not subject to publication in the media or placement on the Internet. [10]

The register is maintained in electronic form by FTS Russia. Maintaining the register includes entering records into it, and their storage and updating. Each record is assigned a number, and the date it was entered into the register is specified.

A register entry regarding a person engaged in digital currency mining contains the following information:

• for legal entities – OGRN, INN, full and abbreviated (if any) names; for individual entrepreneurs – OGRNIP, INN, surname, name, and patronymic (if any);
• for legal entities – information about the individual who ultimately directly or indirectly (through third parties) owns (has a predominant participation of more than 25% in the capital of) the legal entity or has the ability to control the actions of such legal entity (beneficial owner);
• electricity supply points used in relation to technical and hardware-software tools used for digital currency mining (except for cases where the person engages in digital currency mining with the involvement of a mining infrastructure operator);
• maximum capacity of technical and hardware-software tools used for mining (except for cases where the person engages in digital currency mining with the involvement of a mining infrastructure operator);
• address of the actual location of technical and hardware-software tools used for digital currency mining;
• name of the territorial grid organization to whose grids the technical and hardware-software tools used for digital currency mining are connected (except for cases where the person engages in digital currency mining with the involvement of a mining infrastructure operator).

Inclusion in the register is performed based on an application for inclusion of information about the person in the register, submitted to the register operator in the form of an electronic document signed with an enhanced qualified electronic signature via the FTS website. Documents in electronic form confirming the specified information are attached to the application, except for cases where the person engages in digital currency mining with the involvement of a mining infrastructure operator. The submitted application is considered within a period of no more than 15 working days from the date the application was submitted.

If it is necessary to verify the accuracy and sufficiency of the submitted information, the register operator is entitled to send a request to the applicant to submit additional documents (information) necessary for making a decision on inclusion in the register. The period specified in the request for the submission of additional documents (information) may not exceed 5 working days.

The register operator makes a decision to refuse inclusion of information in the register on the following grounds:

• the person does not meet the requirements for a person engaged in digital currency mining;
• documents (information) were not submitted in fulfillment of a request, or the submitted documents (information) do not allow for the elimination of the reasons that served as the basis for sending the respective request;
• submission of incomplete or inaccurate information in the application for inclusion in the register, except for cases where the person engages in digital currency mining with the involvement of a mining infrastructure operator.

The rules for maintaining the register do not provide for the possibility of appealing a refusal of inclusion in the register. Law enforcement practice on this issue is also absent; therefore, it is not possible to assess the position of the courts in the event such an application is filed with a court.

Register of Mining Infrastructure Operators

Information about a mining infrastructure operator entered in the register is not subject to publication in the media or placement on the Internet. The information contained in the register is provided to state authorities, other state bodies, courts, the Bank of Russia, territorial grid organizations, and the system operator of Russian electric power systems using the unified system of interdepartmental electronic interaction. [11]

"Mining infrastructure" is defined as objects used for placing technical and hardware-software tools used for digital currency mining and mining pools, including engineering and technical support (electricity supply), and (or) the specified technical and hardware-software tools.

"Mining infrastructure operator" means a person providing services for the provision of mining infrastructure for digital currency mining and mining pools.

Russian legal entities and individual entrepreneurs are entitled to perform the activity of a mining infrastructure operator from the moment of inclusion in the register of mining infrastructure operators.

A mining infrastructure operator is obligated to ensure the continuity and reliability of the mining infrastructure's functioning, the protection of the information processed by it, and the stability of the power supply systems during its activity.

A mining infrastructure operator must create an internal control service and a risk management service or appoint a controller and an official responsible for organizing the risk management system.

When performing the activity of a mining infrastructure operator, its sole executive body, members of the collegiate executive body (if any), members of the collegiate management body (supervisory or other board) (if any), chief accountant, head of the internal control service (controller), and head of the risk management service (official responsible for organizing the risk management system) must meet qualification and business reputation requirements upon appointment (election) to positions and during the entire period of performing functions in the specified positions, including temporary performance of duties: [12]

• the person performing the functions of the sole executive body and members of the collegiate executive body must have a higher education, as well as at least 2 years of experience managing an organization performing activity on the financial market, an organization performing activity in the sphere of information and communication technologies or their structural subdivisions, or experience in management positions in Russian state authorities or state authorities of member states of the Eurasian Economic Union, or the Bank of Russia;
• a member of the collegiate management body (supervisory or other board) must have a higher education;
• the chief accountant must have a higher education and at least 1 year of experience related to bookkeeping, preparation of accounting (financial) statements, or auditing activity;
• the head of the internal control service (controller) and the head of the risk management service (official responsible for organizing the risk management system) must have a higher education and at least 1 year of experience managing an organization (or a structural subdivision of such an organization) related to risk management methodology and assessment, internal control, or internal audit, or experience in management positions in Russian state authorities or state authorities of member states of the Eurasian Economic Union, or the Bank of Russia.

The following requirements are established regarding the business reputation of a mining infrastructure operator:

• absence of an outstanding or unsatisfied criminal record for committing an intentional crime;
• absence of the fact of being held administratively liable during the last 3 years for unlawful actions during the bankruptcy of a legal entity, or intentional and (or) fictitious bankruptcy of a legal entity (except for cases where such an administrative offense resulted in an administrative penalty in the form of a warning);
• absence of the fact of being held criminally liable for unlawful actions during the bankruptcy of a legal entity, or intentional and (or) fictitious bankruptcy of a legal entity;
• absence of information in the list of organizations and individuals suspected of involvement in extremist activity or terrorism, or the lists of organizations and individuals associated with terrorist organizations and terrorists or with the proliferation of weapons of mass destruction;
• absence of a decision to freeze (block) funds or other property.

If the mining infrastructure operator is an IP, he must meet the qualification requirement regarding the possession of a higher education during the performance of the activity, and the business reputation requirements are identical to those already considered.

The register must contain the following information about the mining infrastructure operator:

• for legal entities – OGRN, INN, full and abbreviated (if any) names, domain name, and website page index; for individual entrepreneurs – OGRNIP, INN, surname, name, and patronymic (if any), domain name, and website page index;
• address (addresses) of the location of mining infrastructure objects, specifying the persons engaged in digital currency mining, as well as information about such persons;
• the name of the territorial grid organization to whose grids the mining infrastructure operator is connected;
• electricity supply points used in relation to technical and hardware-software tools used for digital currency mining;
• maximum capacity of technical and hardware-software tools used for mining;
• information on the existence of an electricity production object belonging to the mining infrastructure operator on the basis of ownership or other legal grounds;
• the maximum capacity provided by the mining infrastructure operator to each person engaged in digital currency mining for electricity consumption by technical and hardware-software tools used for digital currency mining.

Inclusion in the register is performed based on an application submitted to the register operator in the form of an electronic document signed with an enhanced qualified electronic signature via the official FTS Russia website. The submitted application must be considered within a period of no more than 15 working days from the date of its submission.

If it is necessary to verify the accuracy and sufficiency of information about the mining infrastructure operator, the FTS is entitled to send a request to the applicant to submit additional documents (information) necessary for making a decision. The period specified in the request for the submission of additional documents (information) may not exceed 5 working days.

In the event of sending such a request, the register operator is entitled to suspend the consideration of the application for inclusion of information once for a term of no more than 10 working days.

A decision to refuse inclusion in the register may be made on the following grounds:

• non-compliance with requirements for the activity of a mining infrastructure operator;
• failure to submit documents (information) in fulfillment of a request, or submission of documents (information) that do not allow for the elimination of the reasons that served as the basis for sending the request;
• submission of incomplete or inaccurate information in the application.

A mining infrastructure operator is not entitled to provide services for the provision of mining infrastructure to persons not included in or excluded from the register of persons engaged in digital currency mining.

The maintenance of the register of persons engaged in digital currency mining and the register of mining infrastructure operators, including entering information into them, changing information, and excluding information from the specified registers, as well as making decisions to refuse inclusion of information in the specified registers, is performed by the Federal Tax Service.

Reporting on the Activity of Miners and Mining Infrastructure Operators

In accordance with Article 86.5 of the Tax Code of the Russian Federation (the "Tax Code"), mining infrastructure operators are obligated to report to the tax authority at their location information related to digital currency mining by a person to whom such operator provides services for the provision of mining infrastructure. The recommended composition of the information and the format for its submission are provided in FTS Russia Order No. ED-7-15/429@ dated April 28, 2025, On Approving the Format for Submitting the Information Specified in Paragraph 1 of Article 86.5 of the Tax Code of the Russian Federation to the Tax Authority in Electronic Form, as well as the Composition of Such Information, which enters into force on July 30, 2025.

Such information is sent in electronic form via telecommunications channels no later than the 25th day of the month following the expired quarter. When the 25th day falls on a weekend or non-working day, the deadline is moved to the next following working day (Article 6.1 of the Tax Code). Violation of the deadline for submitting information entails a fine of 40,000 rubles (Article 129.16 of the Tax Code).

When receiving digital currency as a result of mining, it is also necessary to report information on the volume of digital currency received to FTS Russia, including specifying the address-identifier, including the mining pool address-identifier to which the digital currency was credited. The information is provided in the form of an electronic document signed with an enhanced qualified electronic signature via the FTS website no later than the 20th day of the month following the month in which the digital currency was received.

The specified information includes:

• information about the person engaged in digital currency mining (including a mining pool participant) – full name, INN, and OGRN for a legal entity, or surname, name, and patronymic (if any), INN, and OGRNIP for an individual entrepreneur, or surname, name, and patronymic (if any), INN, and identification document information for individuals;
• the address-identifier to which the digital currency was credited, as well as the mining pool address-identifier from which the digital currency was credited to the address-identifier during the reporting month;
• the mining pool address-identifier to which the digital currency was credited, if the digital currency was not credited to the address-identifier during the reporting month;
• the name of the received digital currency;
• the volume of digital currency credited to the address-identifier and (or) the mining pool address-identifier;
• the volume of digital currency issued but not credited to the address-identifier;
• the contact telephone number of the person engaged in digital currency mining (including a mining pool participant);
• the e-mail address of the person engaged in digital currency mining (including a mining pool participant);
• the reporting month, and the serial number of the correction of the information on the volume of digital currency received in the event of digital currency issuance (receipt) as a result of digital currency mining, on the address-identifier and (or) the mining pool address-identifier;
• the details of the information resource on the Internet displaying real-time information on the mining work process (if any);
• the name (make and model), factory number, quantity, aggregate computing capacity, number of hours of operation of the technical and hardware-software tools used for digital currency mining, and the amount of electricity consumed. [13]

Liability for Violation of Mining Rules

A person engaged in digital currency mining (including a mining pool participant) is subject to exclusion from the register in the following cases:

• application by the person regarding the termination of digital currency mining;
• termination of the legal entity or termination of the individual entrepreneur's activity, or the introduction of a procedure applied in a bankruptcy case;
• discovery of inaccurate information submitted to the register operator;
• non-compliance with requirements set in accordance with the CFA Law;
• discovery of facts of violation of the electricity consumption regime, in the event of a decision to prohibit digital currency mining in certain constituent entities or in certain of their territories;
• existence of an entry in the USRLE regarding the inaccuracy of information about the head of the legal entity. [14]

In the event of a repeated violation within one year by a person engaged in digital currency mining (including a mining pool participant) of the requirements for identification, assessment of the degree (level) of risk of performing suspicious operations, and other requirements established by Federal Law No. 115-FZ dated August 7, 2001, On Countering the Legalization (Laundering) of Criminally Obtained Incomes and the Financing of Terrorism, the FTS makes a decision to exclude the violator from the register of persons engaged in digital currency mining.

Furthermore, in the event an electricity consumer fails to execute a decision made to prohibit digital currency mining (including participation in mining pools) and (or) in the event of digital currency mining and (or) mining infrastructure operator activity without inclusion in the corresponding register, parameters of the technological connection are changed by court decision in terms of reducing the maximum connected capacity up to full disconnection of power-receiving devices from the electric grid. The fee for the technological connection of such power-receiving devices in the specified cases is not subject to refund (Article 26 of Federal Law No. 35-FZ dated March 26, 2003, On Electric Power Industry).

For the same reasons, electricity consumption may be immediately and fully restricted. This may be done, for example, at the initiative of law enforcement authorities, an energy supply organization, or a grid organization. After the violation is eliminated, the initiator of the restriction must be notified. Electricity supply will be resumed no later than 24 hours from the moment the notification is received from you. If the restriction was introduced for a violation of a government prohibition, supply can be resumed only after the prohibition expires. We note that the initiator of the restriction may independently recognize it as groundless. It can also be challenged in court. [15]

We note that specific administrative and criminal liability for violation of mining rules has not been established. Meanwhile, general measures of liability apply, in particular:

• unauthorized connection to the electric grid and its use (if there are no signs of a criminally punishable act) under Article 7.19 of the CAO RF entails the imposition of an administrative fine on citizens in the amount of 10,000 to 15,000 rubles; on officials – 30,000 to 80,000 rubles or disqualification for a term of 1 to 2 years; and on legal entities – 100,000 to 200,000 rubles;
• for unauthorized connection to energy grids creating the possibility of unmetered electricity consumption and the causation of property damage exceeding 1 million rubles, liability under Article 165 of the Criminal Code of the Russian Federation will arise,[16] namely, a fine in the amount of up to 300,000 rubles or in the amount of the salary or other income of the convicted person for a period of up to 2 years, or compulsory labor for a term of up to 2 years with restriction of liberty for a term of up to 1 year or without such, or deprivation of liberty for a term of up to 2 years with a fine in the amount of up to 80,000 rubles or in the amount of the salary or other income of the convicted person for a period of up to 6 months or without such and with restriction of liberty for a term of up to 1 year or without such.

In conclusion, it must be noted that digital currency mining is regulated in detail by Russian legislation. The CFA Law defines the basic concepts, the persons performing mining, and the requirements for them. The Russian Government, in its acts, has established the procedure for maintaining registers of persons engaged in digital currency mining and mining infrastructure operators, prohibitions for persons engaged in mining, as well as a prohibition on conducting mining in several Russian regions and territories. Income from mining is subject to taxation.

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References

[1] Lababueva O.S. The Concept and Legal Nature of Mining. Business and Law Journal, 2024, No. 1.

[2] Decree of the Government of the Russian Federation No. 1464 dated October 31, 2024, On Approving the Rules for Maintaining the Register of Persons Engaged in Digital Currency Mining, and the Rules for Maintaining the Register of Mining Infrastructure Operators.

[3] Decree of the Government of Russia No. 1469 dated November 1, 2024, On Establishing the Electricity Consumption Limit for Digital Currency Mining (Including Participation in a Mining Pool) Without Inclusion in the Register of Persons Engaged in Digital Currency Mining by Individuals – Citizens of the Russian Federation Who Are Not Individual Entrepreneurs, and on Amending Decree of the Government of the Russian Federation No. 1178 dated December 29, 2011.

[4] Ruling of the Arbitration Court of the West Siberian District dated June 16, 2025, in case No. A45-31114/2023.

[5] Ibid.

[6] Federal Law No. 36-FZ dated March 26, 2003, On Specifics of the Functioning of the Electric Power Industry and on Amending Certain Legislative Acts of the Russian Federation and Recognizing Certain Legislative Acts of the Russian Federation as Invalid in Connection with the Adoption of the Federal Law On Electric Power Industry.

[7] Decree of the Government of the Russian Federation No. 1467 dated November 1, 2024, On Approving the Rules for Providing (Opening) an Address-Identifier to Federal Executive Authorities, Prosecution Authorities, Inquiry and Preliminary Investigation Authorities, and Authorities Performing Operational-Investigative Activity.

[8] Decree of the Government of the Russian Federation No. 1468 dated November 1, 2024, On Approving the Rules for Establishing a Prohibition on Digital Currency Mining (Including Participation in a Mining Pool) in Certain Constituent Entities of the Russian Federation or in Certain of Their Territories.

[9] Decree of the Government of the Russian Federation No. 1869 dated December 23, 2024, On Establishing a Prohibition on Digital Currency Mining (Including Participation in a Mining Pool) in Certain Constituent Entities of the Russian Federation and in Certain Territories of Constituent Entities of the Russian Federation.

[10] Decree of the Government of the Russian Federation No. 1464 dated October 31, 2024, On Approving the Rules for Maintaining the Register of Persons Engaged in Digital Currency Mining, and the Rules for Maintaining the Register of Mining Infrastructure Operators.

[11] Ibid.

[12] Decree of the Government of Russia No. 1463 dated October 31, 2024, On Approving Requirements for the Activity of a Mining Infrastructure Operator.

[13] Decree of the Government of the Russian Federation No. 1466 dated November 1, 2024, On the Obligation of a Person Engaged in Digital Currency Mining (Including a Mining Pool Participant) to Provide Information on the Receipt of Digital Currency in the Event of Digital Currency Issuance (Receipt) as a Result of Digital Currency Mining, and on the Address-Identifier, Including the Mining Pool Address-Identifier.

[14] Decree of the Government of the Russian Federation No. 1462 dated October 31, 2024, On Establishing Other Cases for Excluding a Person Engaged in Digital Currency Mining (Including a Mining Pool Participant) from the Register of Persons Engaged in Digital Currency Mining.

[15] Decree of the Government of the Russian Federation No. 442 dated May 4, 2012, On the Functioning of Retail Electricity Markets and Full and (or) Partial Restriction of the Electricity Consumption Regime.

[16] Resolution of the Plenum of the Supreme Court of the Russian Federation No. 48 dated November 30, 2017, On Judicial Practice in Cases of Fraud, Misappropriation, and Embezzlement.