Despite introducing new mining laws in late 2024, Russia has only managed to register 30% of its crypto miners, raising concerns about enforcement and industry compliance. Government officials now pledge stronger measures to bring the remaining 70% of miners into the legal framework.
Crypto Mining Law Still Facing Resistance
The Russian government began enforcing two new laws in October and November 2024, aimed at regulating and taxing the domestic crypto mining sector. These regulations included legal definitions for mining activities and mandatory registration with the Federal Tax Service.
However, Finance Ministry official Ivan Chebeskov revealed that most miners are still operating in the shadows.
“When introducing mining regulations, our general approach was to bring this industry out of the shadows. We have not yet completed this process,” said Chebeskov.
Authorities Plan to Increase Enforcement
Regulators now plan to push for broader compliance. Although no exact timeline or enforcement tools were disclosed, the Finance Ministry has signaled that penalties may be increased.
A new proposal reportedly under review would raise the fine for illegal mining operations from 200,000 rubles to 2 million rubles (approximately $25,500). This move reflects growing pressure on miners who continue to evade taxation and licensing.
Crackdown on Illegal Mining in Rostov
On the same day as Chebeskov’s comments, Russian law enforcement reported shutting down an illegal mining operation in Bataysk, Rostov region. Authorities seized 13 mining rigs and opened a criminal investigation under Article 165 of the Russian Criminal Code.
These raids reflect a broader trend in Russia, where illegal farms are often hidden in garages, basements, and abandoned buildings.
Criticism of Russia’s Mining Regulations
Local crypto experts argue the laws have not fully legalized the industry, instead creating vague restrictions and increased tax scrutiny. Notably:
- Foreign nationals are barred from mining in Russia
- Mining is restricted in specific regions
- The legal framework lacks clear support for small and mid-sized operations
According to analysts, this partial regulation model has discouraged voluntary compliance.
Conclusion: Stricter Measures Coming
As Russia pushes to modernize its crypto framework, unregistered miners may face tighter enforcement, higher fines, and limited legal protection. With only 30% registered, the country faces a major challenge in formalizing the sector and capturing lost tax revenue.
The coming months may determine whether Russia’s strategy succeeds—or drives more of the industry deeper underground.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.