Russia’s Crypto Mining Regulation Efforts Fall Short as Majority of Miners Remain Unregistered

Russia's attempt to bring its cryptocurrency mining sector into compliance with new regulations has met with limited success. Despite legislation introduced in late 2024 requiring mining companies to register with the Federal Tax Service, only about 30% have done so, according to Ivan Chebeskov, an official at the Finance Ministry.

The government had hoped the laws WOULD provide transparency and legal recognition to the industry, but low compliance rates persist. Authorities are now considering stricter penalties, including raising fines for illegal mining operations from 200,000 rubles to 2 million rubles. Enforcement actions have already increased, with recent shutdowns of unlicensed mining setups in Bataysk and the Pribaikalsky region.

Critics argue the regulations stop short of full legalization, serving primarily as a taxation mechanism. Analysts point to additional concerns over restrictions on foreign participation and operational limitations in certain areas. Nevertheless, Russia's mining sector continues to expand, fueled by cheap electricity and growing interest from foreign firms, particularly Chinese companies.