Russian Policymaker Says State Should Seize Crypto From Illegal Miners

Russian authorities are moving toward stricter oversight of cryptocurrency mining as a senior policymaker has called for the state to seize digital assets from unregistered miners, signaling a tougher stance on clandestine operations.

Yevgeny Masharov—a key lawmaker in the State Duma—has urged the government to empower courts to confiscate both the mining equipment and the actual cryptocurrencies obtained by miners operating without proper authorization.

Masharov’s proposal, now being debated as an amendment to existing legislation in the State Duma, stems from growing concerns that illegal mining is placing unsustainable strain on local energy grids, particularly in resource-rich regions such as Irkutsk Oblast.

According to Masharov, the relentless demand for electricity from underground operations has triggered power shortages and breakdowns, prompting regional authorities to appeal for federal intervention.

The legislative amendment would formally classify cryptocurrency as intangible property under Russian law, enabling law enforcement and the courts to directly confiscate digital holdings—not just hardware—from offenders. This marks a significant escalation from the status quo, where fines or equipment seizures were the only available punitive measures. By targeting the actual crypto mined and any profits generated, the aim is to “make illegal mining unprofitable” and push unregistered miners into compliance with tax and licensing requirements.

To reinforce this crackdown, separate proposals outline steep fines: up to 2 million rubles (about $25,000) for companies, 200,000–400,000 rubles ($2,500–$5,000) for individual entrepreneurs and officials, and 100,000–200,000 rubles ($1,250–$2,500) for private citizens caught mining at home. Repeat offenders and large industrial-scale operations are expected to face the harshest penalties, including criminal sanctions.

The backdrop to this regulatory push is Russia’s delicate balancing act—while rejecting calls for a total ban on crypto mining, which some regions had requested, the government is still determined to bring the sector firmly under its control. By formalizing the industry and cracking down on underground operations, officials hope to curb energy waste, plug tax loopholes, and deliver greater transparency.

If passed, these measures would position Russia among the most aggressive jurisdictions worldwide in targeting illicit crypto mining. However, success will hinge on the authorities’ ability to detect and prosecute clandestine operations, which have so far been both widespread and technically difficult to stamp out.

In the meantime, the message to miners is unambiguous: get registered or risk losing not just your hardware, but all the digital assets you’ve mined.

It's me, @justmythoughts, an ordinary Hive user looking to make the most of the platform. I will appreciate your support. Follow me for more. Thanks, Gracias :)

Posted Using INLEO