Russia discovers massive open-air crypto mining farm – 29,800 square meters now under investigation by Krasnodar prosecutors for illegal crypto mining activity.
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Russia Moves to Tighten Penalties for Illegal Crypto Mining – First Investigations Already Underway
Only recently, Russia announced its intention to introduce tougher penalties for illegal crypto mining – and now we are witnessing the first precedents. In particular, prosecutors in Krasnoyarsk uncovered a mining farm occupying 29,800 square meters. The operation was set up on the grounds of an inactive industrial facility and was officially registered to a company named OOO Upravlenie N.
An inspection revealed that there was no actual building at the site. Instead, transformers, mobile computing centers, and power generation units had been installed entirely outdoors. All the equipment had been leased to a separate entity, which deployed the mining infrastructure without any legal rights to the land or licenses to operate energy facilities. Power was supplied via an unauthorized connection to the city’s electrical grid.
According to supervisory authorities, this created excessive load and risk of emergency blackouts, with estimated damages reaching 4.6 million rubles per month, or approximately $60,000. Inspectors also recorded multiple secondary violations of fire safety regulations, including the absence of access control and the lack of fire protection systems.
This case illustrates that the proposed legislative initiative is moving forward – and further investigations are likely to follow. Meanwhile, Russia continues to legalize crypto for registered enterprises and is also considering the legalization of stablecoins, albeit the United States and its GENIUS Act. Still, the Russian approach appears more aligned with serving state interests and international trade rather than supporting retail investors or independent developers.
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Conclusion
Crypto regulation is evolving worldwide – and Russia is no exception. However, progress looks very different across jurisdictions. Even in the U.S., certain legislative efforts raise questions about whether the real goal is oversight or innovation. In other regions, those questions are even more noticeable.
We will continue monitoring developments closely – stay tuned for all key updates in crypto, blockchain, and regulation.
