Russian Crypto Miners Scramble for Legitimacy as Registrations Explode 10X

Moscow’s mining farms are racing to ditch their gray-market roots—and the Kremlin’s regulators are cashing in.

The rush to compliance

With energy subsidies drying up and audits looming, underground operators face a stark choice: get licensed or get shut down. No more ‘accidental’ warehouse fires to hide ASIC rigs.

Follow the (crypto) rubles

Ten times more firms filed paperwork last quarter than in 2024—because nothing motivates like the threat of seized assets. Even oligarchs prefer receipts when the taxman comes knocking.

The new mining boom

Forget Siberian basements—this surge is about corporate structures, VAT invoices, and (gasp) profit reporting. Next up? Mining IPOs, because nothing says ‘legit’ like letting bankers skim 7% off your hash rate.

Rise In Registered Mining Firms

The new register forces firms to share the number of coins they mine and the wallets where those assets sit. It also paves the way for the FTS to collect taxes on mining profits.

Russia sees tenfold increase in registered crypto mining firms #russia #cryptomining https://t.co/dmpQWaFoaC

— Dimsumdaily Hong Kong (@dimsumdaily_hk) July 25, 2025

Industry figures suggest this could swell state coffers by as much as $500 million each year. That estimate comes from Russia’s mining chiefs, who have been lobbying hard for clear rules rather than outright bans.

Early Grid Overloads Plague Miners

Before registration was mandatory, many operators kept their rigs under wraps. They didn’t want to risk fines or shutdowns.

As a result, some cities and districts faced sudden blackouts when large-scale setups sucked down more juice than local power lines could handle.

Alexey Nechaev, head of the New People Party, told lawmakers on July 23 that those days are fading fast.

Industrial miners aren’t stopping at ASICs. They poured over $60 million into artificial intelligence projects this year, Nechaev said.

Based on FTS figures, this shift means more tech money stays in Russia instead of flowing out. It’s a sign that serious players see crypto as part of a broader toolkit, not just a standalone business.

The Association of Industrial Miners reports Russia now holds over 150 EH/s, or clos to 17% of the world’s Bitcoin hashrate, making it the globe’s second top miner after the US.

Domestic estimates put the country’s 2024 bitcoin haul at up to 40,000 BTC—around $4.8 billion at today’s prices. That volume underlines how quickly a clear legal framework can unleash growth.

Meanwhile, a top policymaker has urged courts to treat coins as “intangible property” so they can seize assets from illegal miners.

He argues that adding crypto to property laws WOULD strengthen the state’s hand against unregistered operations. If approved, the move could tighten the net around anyone still trying to mine in the grey zones.

For now, Russia’s leaders seem settled on one thing: regulation beats prohibition. By mapping out who’s mining where, Moscow hopes to keep its grids stable, its tax books balanced, and its tech sector growing.

Featured image from Pexels, chart from TradingView