Russia struggles to transition crypto mining industry from the shadows, as compliance remains worryingly low.
Key Takeaways
- Russia’s crypto mining sector is still largely unregistered despite new rules.
- The Russian government is considering increasing fines to enforce compliance with the crypto mining regulations.
Russian Deputy Minister of Finance Ivan Chebeskov said Thursday that the country’s mining sector still operates largely in the shadows, with only 30% of miners registered with the Federal Tax Service since President Vladimir Putin signed new mining legislation in the summer of 2024.
Chebeskov, speaking at the 28th St. Petersburg International Economic Forum (SPIEF), said that the goal of introducing mining laws was to bring more transparency and oversight to the crypto mining sector.
“We have not yet completed this process,” Chebeskov said. “This process is still far from complete. Another 2/3 need to be “cleaned up” and entered into the register.”
Following the mining legislation’s implementation, late last year, the Russian authorities enacted two crypto mining-related bills, which established legal definitions and registration requirements for mining businesses.
Despite these measures, 70% of miners continue to operate underground.
Chebeskov indicated that authorities will work to bring the remaining unregistered miners into compliance.
