Russia is facing a major roadblock in regulating its crypto mining sector, as most operations continue to remain in the shadows. Despite implementing new laws in late 2024 aimed at formalizing the industry, officials now reveal that only 30% of mining businesses have officially registered with the government.
According to Ivan Chebeskov, a senior official from the Ministry of Finance, around 70% of crypto miners have yet to comply with registration requirements. This data, shared during a recent press briefing reported by TASS, underscores the ongoing struggle to bring transparency and control to Russia’s growing crypto mining scene.
“Our goal when introducing mining regulations was to bring this industry out of the shadows. We are still far from achieving that,” said Chebeskov.
Government Plans Tighter Rules and Bigger Penalties
While no specific new measures were disclosed during the announcement, authorities are expected to intensify efforts to bring more miners into compliance. Previous reports have suggested that the Russian Ministry of Digital Development is working on legislation that would increase penalties for illegal mining operations.
As of June 9, proposed fines could go up to 2 million rubles (around $25,500) — a significant jump from the current maximum of 200,000 rubles.
Crackdown Continues: Illegal Farm Shut Down in Rostov
On the same day Chebeskov made the remarks, Russian law enforcement announced the shutdown of an illegal crypto mining farm in the Rostov region. Authorities seized 13 mining rigs found inside a garage complex in the city of Bataysk. A criminal case has been launched under Article 165 of Russia’s Criminal Code, which covers property-related crimes.
This is part of a broader crackdown on unauthorized crypto operations across the country, which officials believe undermine tax compliance and energy security.
Crypto Mining in Russia: Legal Grey Zones Still Remain
Although Russia passed two major crypto mining laws in late 2024 to define and regulate the sector, critics argue the framework remains unclear. Some analysts say the rules do little beyond establishing taxation grounds, while also introducing limitations like banning foreign entities from mining and imposing regional restrictions.
“There’s no full legalization — just stricter control,” said Nikita Zuborev, chief analyst at BestChange, in a previous interview.
What’s Next?
With most miners still operating without proper registration, Russia is expected to tighten the regulatory net in the coming months. Whether tougher penalties and enforcement will be enough to convince miners to go legal remains to be seen.
