Moscow Gets Serious About Crypto Mining Enforcement
Russia has officially launched a national registry of crypto mining rigs, a move designed to rein in unregulated miners, enforce tax compliance, and stop widespread electricity theft. The effort is a coordinated push involving the Energy Ministry, Federal Tax Service, and Ministry of Digital Development, according to a Friday report by state-run outlet RIA Novosti.
The register has been sent to regions with high miner activity, especially those experiencing surges in unlicensed operations. The country’s leadership sees this step as key to finally bringing order to the growing crypto mining sector, which has largely operated in a legal gray zone despite new regulations passed in late 2024.
Only 30% of Miners Are Compliant So Far
Finance Ministry official Ivan Chebeskov warned last month that just 30% of Russian miners had registered with tax authorities, despite legislation passed to define and regulate the industry. The remaining 70% are currently operating outside the legal framework, raising red flags over tax evasion and strain on local power grids.
According to Deputy Energy Minister Petr Konyushenko, the registry will allow the government to “precisely identify consumers using electricity for mining needs,” which is critical for implementing taxation and energy regulation.
Mining Bans in 10 Russian Regions
Back in November 2024, Russia began enforcing a law that bans crypto mining activities in 10 regions, including both mining pools and individual miners. The ban will remain in effect until March 15, 2031, with the goal of preventing energy blackouts in vulnerable areas, as reported by TASS.
Earlier this year, the Energy Ministry also revealed its plan to track hardware deployments in restricted regions. With crypto mining requiring high electricity consumption, regions like Irkutsk and Krasnoyarsk, which offer cheap hydroelectric power, have become hotbeds for illegal activity—often hidden inside garages, trucks, or residential basements.
Penalties for Illegal Mining Set to Rise
The Ministry of Digital Development is also drafting a new law to significantly increase fines on illegal mining operations. According to Forbes Russia, the maximum fine could soon jump to 2 million rubles ($25,500)—a tenfold increase from the current 200,000 rubles ($2,534).
The crackdown is already in full swing. On June 14, authorities shut down a mining setup hidden inside a truck in Pribaikalsky. Just days later, police discovered an entire mining farm tucked away in a garage in the city of Bataysk, powered by stolen electricity.
Toward a Regulated, Taxed, and Tightly Monitored Industry
These moves come alongside reports that Russia’s central bank and finance ministry are preparing to launch a state-backed crypto exchange, underscoring how the government is moving from prohibition to control. While the national crypto stance remains cautious, there’s clearly an effort to monetize and formalize mining rather than ban it outright.
The new registry, rising fines, and regional bans suggest that Russia wants to keep the industry alive, but only on state-approved terms. Those outside the law will increasingly find themselves locked out of the power grid—and out of business.
