Russia Struggles to Bring Underground Crypto Miners Into the Light Despite New Laws

Russia’s attempt to formalize its crypto mining sector is falling short, with most miners opting to remain off the books despite new regulations.

Since implementing laws in late 2024 that require mining companies to register with the Federal Tax Service, only about 30% have complied, according to Finance Ministry official Ivan Chebeskov.

Authorities had hoped the legislation would bring transparency and legal recognition to the industry, but compliance remains low. Chebeskov acknowledged the gap and said the government will continue working to integrate the remaining 70% into the legal framework. Meanwhile, officials are considering tougher penalties, including raising fines for illegal mining from 200,000 rubles to 2 million.

Enforcement efforts have already intensified. Police recently shut down an unlicensed operation in Bataysk and uncovered another mobile setup siphoning power in the Pribaikalsky region.

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Critics argue the law falls short of true legalization and instead serves primarily as a tool for taxation. Analysts have also raised concerns over restrictions on foreign participation and operational limits in certain areas. Still, despite the hurdles, Russia’s mining sector is expanding, driven by low electricity costs and growing interest from foreign firms, particularly from China.

Events like the Moscow Blockchain Forum have seen increased participation from mining service providers, reflecting the sector’s growing infrastructure and investment. Even with legal uncertainties, mining in Russia is evolving into a full-fledged industry.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.