Key Takeaways
- Only 30% of Russian bitcoin miners have registered with tax authorities since new laws took effect.
- Authorities are considering raising fines for unregistered mining operations to $25,500.
- Despite regulatory hurdles, Russia's mining industry continues to grow, attracting both local and foreign interest.
Russia’s recent efforts to regulate bitcoin mining have seen limited success, with only 30% of mining businesses registering with the Federal Tax Service since late 2024.
The country introduced legal definitions and registration requirements for miners through two bills enacted in October and November 2024.
However, Finance Ministry official Ivan Chebeskov stated that the process is “still far from over,” noting that 70% of miners continue to operate underground:
“When introducing mining regulations, our general approach was to bring this industry out of the shadows as much as possible. We have not yet completed this process.”
Penalties
Authorities are considering stricter penalties to encourage compliance.
Forbes Russia reported that proposed legislation may raise fines for illegal mining operations from 200,000 rubles to 2 million rubles ($25,500).
Enforcement actions have increased, with police recently shutting down an illegal mining farm in Rostov region, seizing 13 mining devices.
Another operation was uncovered last week in Pribaikalsky, where a mobile mining setup was stealing electricity.
Law criticism and industry growth
Local analysts argue that the new bitcoin mining laws in Russia focus more on taxation than true legalization and introduce restrictions, such as banning foreign entities from mining and limiting operations in certain regions.
Despite this, the industry continues to grow. Vyacheslav Kopylov of Prostomining highlighted the importance of new laws allowing legal entities to register mining equipment and pay taxes, signaling progress for Russia’s mining sector.
Major events like Russia’s Blockchain Forum have seen increased participation from mining firms, reflecting a maturing infrastructure. Meanwhile, miners from countries like China are drawn to Russia’s cheap energy, despite regulatory barriers.
