Russia’s efforts to regulate cryptocurrency mining have seen limited success, with only 30% of mining businesses registering with the Federal Tax Service since late 2024.
The government began implementing two crypto mining laws in October and November 2024, establishing legal definitions and mandatory registration for mining operations.
However, according to Finance Ministry official Ivan Chebeskov, around 70% of miners continue to operate unofficially. As reported by local news outlet TASS, Chebeskov stated, “When we introduced mining regulations, the goal was to bring the industry out of the shadows as much as possible. That process is still ongoing.”
Regulators Vow to Intensify Efforts for Increased Miner Registrations
Chebeskov emphasized that registering Russian mining companies is “still far from over” and pledged that authorities will continue working to bring the remaining 70% into compliance. “We will work to complete this process,” he said.
Although he didn’t specify any concrete plans to encourage registration, earlier reports indicate that Russia may impose harsher penalties on unregistered miners.
On June 9, Forbes Russia revealed that the country’s digital development ministry is drafting a bill to raise fines for illegal crypto mining from 200,000 rubles to 2 million rubles (approximately $25,500).
Crackdown Intensifies on Illegal Crypto Miners
Chebeskov’s latest remarks coincided with news of another crackdown on illegal mining operations in Russia’s Rostov region.
Authorities uncovered an illicit mining farm inside a garage complex in Bataysk, seizing 13 mining devices, according to an official statement from the Russian Ministry of Internal Affairs on Thursday.
Local investigators have launched a criminal case under Article 165 of Russia’s Criminal Code, the official added.
Many industry observers have criticized Russia’s crypto mining laws enacted in late 2024, arguing they fall short of fully legalizing mining activities in the country.
“No new clear regulations have been introduced; instead, the laws mainly set the stage for more precise taxation,” BestChange chief analyst Nikita Zuborev told Cointelegraph last year.
Legal experts also pointed out that the new rules impose various restrictions, including bans on foreign individuals mining in Russia and limitations on mining activities in certain regions.
