Tenfold Surge in Registered Crypto Mining Firms as Russia Tightens Regulations

Russia's crypto mining sector is undergoing a dramatic transformation. From just 91 registered firms at the start of 2024, over 1,000 have now joined the official ranks following new legislation mandating registration for operations consuming more than 6,000 kWh monthly.

The Federal Tax Service's new registry requires disclosure of mining outputs and wallet addresses, creating a framework for taxation that could generate $500 million annually. Industry leaders have welcomed the clarity, having long advocated for regulation over prohibition.

This shift comes after years of clandestine operations straining local power grids. Alexey Nechaev of the New People Party notes the transition has been challenging, with some regions experiencing blackouts as previously hidden mining setups emerged from the shadows.