Russia’s Crypto Mining Black Hole: Finance Ministry Reveals 70% of Miners Operate in Shadows

Russia’s finance ministry just dropped a bombshell—only 30% of crypto miners are playing by the rules. The rest? Ghost operations.

Underground mining boom defies regulation

While Moscow drafts legislation to tame the industry, unregistered miners are racking up profits off-grid. No taxes, no oversight—just pure decentralized hustle.

Cold wallets getting hotter than Siberian winters

The ministry’s disclosure exposes a glaring gap in enforcement. Meanwhile, anonymous rigs keep humming in basements and abandoned factories, fueled by cheap energy and regulatory loopholes.

Another case of ‘innovate first, regulate never’—classic finance ministry strategy. Maybe they’ll get around to it after the next bull run.

Russia moves to formalize crypto mining

Russia legalized crypto mining in 2023 as part of its ongoing effort to tax and regulate the industry. In 2024, the country imposed a 15% tax on cryptocurrency mining profits, based on market value when received. However, it also lifted some taxes, including VAT on crypto purchases.

For Russian citizens and businesses, Bitcoin (BTC) mining remains a profitable way to leverage the country’s cheap energy prices. At the same time, low living standards and ongoing sanctions make it a competitive way for both individuals and companies to earn income.