Russia’s Crypto Crackdown Fails as Underground Miners Dodge New Regulations – Who’s Really in Control?
Moscow's latest attempt to regulate crypto mining faces stiff resistance from an unlikely adversary: its own underground mining operations. Despite fresh legislation aimed at bringing miners into compliance, reports suggest the shadow industry is thriving—and laughing all the way to the blockchain.
The Great Mining Game
Russian authorities rolled out new rules this year demanding miners register and pay taxes. Instead, operators are doubling down on stealth tactics—relocating to remote regions, masking energy consumption, and even bribing local officials (because some traditions never change).
Energy Wars
With industrial-scale operations sucking power from aging grids, state-run utilities are playing whack-a-mole. One Siberian plant reportedly found miners siphoning enough electricity to power a small town—while paying nothing but the occasional bribe.
The Bottom Line
Until Russia can offer miners better incentives than 'register and get taxed,' its crypto economy will keep flourishing in the shadows. Meanwhile, bureaucrats are learning what crypto natives already know: decentralized networks don't care about your paperwork. The ruble? Now that's a different story.
BlackRock’s BUIDL Fund Becomes Margin Collateral on Deribit and Crypto.com
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.
