Chairman of the Russian Energy Commission: Illegal cryptocurrency mining costs Russia approximately $250 million annually.

PANews reported on January 21 that, according to Cryptopolitan, Nikolay Shulginov, chairman of the Russian Energy Commission, stated that illegal cryptocurrency mining causes more than 20 billion rubles (approximately $250 million) in losses to the Russian economy and energy sector annually, leading to power shortages, grid overload, and affecting other users, including social facilities and newly built homes.

Russia legalized cryptocurrency mining in late 2024, requiring operators to register with the Federal Tax Service and pay taxes, but currently less than a third have completed the registration. This week, the State Duma submitted a bill proposing administrative fines of up to 2 million rubles for illegal mining, with repeat offenders facing fines of up to 10 million rubles. Shulginov further suggested introducing criminal liability, and the Ministry of Justice has also proposed imprisonment or "forced labor" for unregistered miners. In addition, the Duma has passed a bill in its first reading authorizing the Ministry of Finance to regulate the cryptocurrency market (including mining) in order to remove administrative barriers and increase industry registration rates.