Bitcoin Mining Booms in Russia Amid Favorable Policies and Rising Demand

Bitcoin mining in Russia has surged, with demand for industrial mining equipment tripling compared to the same period in 2023, according to Prime.

This growth coincides with Bitcoin’s strong price rally in 2024, making mining highly profitable for individuals and institutions.

Key regulatory changes have supported this expansion. Russia now allows unregistered mining for energy consumption under 6,000 kWh per month, with stricter rules for larger operations. Additionally, new tax policies exempt crypto transactions from value-added tax but impose a 15% levy on mined assets, calculated after deducting operational costs.

Despite the boom, Russia has restricted mining in 10 energy-strapped regions until 2031 to manage energy demands. Meanwhile, Bitcoin’s role in the country’s economy continues to grow, with Finance Minister Anton Siluanov confirming its use in international transactions.

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Russia’s regulatory clarity and market conditions position it as a rising force in global Bitcoin mining, even as the government balances growth with energy sustainability.

Alexander Zdravkov