Russia has reported a notable tenfold increase in registered cryptocurrency mining firms over the past six months following new regulatory changes implemented in 2024.
The number of legally registered mining companies surged from 91 to over 1,000, according to data from the Federal Tax Service (FTS). These new regulations require mining firms consuming more than 6,000 kWh of electricity monthly to register, disclose mining volumes, report crypto wallets, and become subject to taxation.
This shift was part of a move to regulate the previously gray-market sector, reduce tax evasion, and address issues like power grid overloads. The regulatory framework is expected to generate over $500 million annually for the Russian Treasury.
Despite this significant increase in registered firms, about 70% of crypto miners remain unregistered and operate underground, according to the Russian Finance Ministry. Authorities continue to push for further registrations and have proposed increased fines for illegal mining operations to encourage compliance.
Russia’s crypto mining industry benefits from government and major state-owned companies’ support, particularly from the energy sector, leveraging cheap electricity in remote regions. This has helped Russia become the world’s second-largest Bitcoin mining hub after the US, with mining revenues estimated in the billions of dollars.
To enhance regulatory control, Russia has also launched a national registry for crypto mining equipment deployed in high-activity regions, aiming to better monitor energy consumption, prevent unregistered mining, and apply taxes effectively. Some regions still have bans on mining to address power shortages.
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