Russia’s crypto mining sector is experiencing an unprecedented boom, with a remarkable tenfold increase in the number of registered firms over just six months. As reported by the Federal Tax Service (FTS), the landscape of crypto mining in Russia has transformed dramatically—from a mere 91 registered entities to over 1,000 since the implementation of a new regulatory framework in 2024. This dramatic rise reflects a shift toward formalization within the industry.
During a State Duma session on July 23, senior MP Alexey Nechaev, representing the New People Party, emphasized the importance of embracing crypto assets while advocating for regulatory oversight rather than outright bans. Nechaev pointed out that prior to the new regulations, many mining operations existed in a gray market, resulting in systemic issues such as power grid overloads and widespread tax evasion. His comments underscore a growing recognition that a well-regulated environment can lead to more sustainable industry practices.
The regulatory changes introduced in late 2024 mandate that all mining firms consuming over 6,000 kWh of electricity each month must register with the FTS. These registered entities are now required to disclose their mining volumes and crypto wallets, bringing them under the umbrella of tax obligations. Initial industry forecasts suggest that this regulatory shift could generate more than $500 million annually for the Russian Treasury, marking a significant new source of revenue for the government.
Nechaev commended this regulatory approach, arguing that past attempts to stifle the mining industry through fines and restrictions only pushed operations into the shadows. By formalizing the sector, the government aims to create a balance that fosters growth while ensuring compliance with necessary regulations.
Notably, this regulatory shift has also positioned Russia as a global powerhouse in Bitcoin mining. Recent data from the Association of Industrial Miners indicates that Russia now ranks second in the world for Bitcoin mining volume, trailing only the United States. With a hashrate exceeding 150 EH/s (exahash per second), Russian miners account for an impressive 16.6% of the global hashrate. Domestic experts estimate that, in 2024 alone, Russian miners generated approximately $4.7 billion worth of Bitcoin based on a hashrate equivalent to BTC 40,000.
Adding another dimension to the mining narrative, Russian miners are increasingly investing in artificial intelligence technologies. Nechaev disclosed that crypto firms allocated approximately 5 billion rubles (around $63 million) toward AI development this year, signaling a pivotal shift toward innovation within the industry. This newfound focus on cutting-edge technology illustrates a broader strategy of domestic investment, as opposed to the earlier tendency of operations to seek capital abroad.
Alongside regulatory compliance and technological advancement, the burgeoning sector has ushered in significant infrastructure improvements. Nechaev noted that the power outages previously common in regions struggling with grid capacity—often linked to mining activities—have “largely stopped.” The FTS’s register now includes many firms that once operated informally, integrating these players into the formal economic framework and helping stabilize the energy grid.
On a parallel track, the Russian government is also intensifying its efforts to target illegal mining activities. In July 2025, a prominent policymaker proposed recognizing crypto as intangible property, a move designed to streamline court-ordered seizures from unregistered entities. This initiative aims to combat illicit mining while reinforcing the legitimacy of operations that comply with regulations.
The rapid expansion of Russia’s crypto mining industry mirrors a larger trend of growing acceptance of digital assets within the economy. As firms navigate the evolving regulatory landscape, their contributions to tax revenues and technological advancements are expected to rise. However, the sector still faces challenges, including the need for ongoing grid stability and competition in the volatile global mining market.
Source: [1] [Russia Reports x10 Rise In Registered Crypto Mining Firms] [https://cryptonews.com/news/russian-authorities-report-x10-rise-in-registered-crypto-mining-firms/]
