Russia Moves to Criminalize Illegal Crypto Mining Amid Power Theft Crackdown

Russia is escalating its regulatory clampdown on unauthorized cryptocurrency mining, with Deputy Prime Minister Alexander Novak announcing plans to impose criminal liability for illegal operations. The move targets miners bypassing energy regulations, particularly those stealing electricity—a growing concern as mining activities strain national power grids.

Administrative penalties will accompany the stricter measures, part of a broader effort to formalize digital asset oversight. Novak emphasized the government's intent to 'comprehensively regulate' decentralized finance next year, signaling heightened scrutiny for an industry that has operated in legal gray areas.

The policy shift follows the Central Bank of Russia's recent mandate requiring financial institutions to report crypto-linked transactions, tightening control over capital flows. Analysts suggest the crackdown may redirect mining activity to regulated industrial zones, where energy usage can be monitored.