Emre Yumlu 
Despite the introduction of new regulations targeting crypto mining activities in Russia, a significant portion of the sector still operates without official registration. Although the legal framework was implemented in late 2024, only around 30% of mining companies have registered with the country’s tax authority.
Two laws enacted in October and November 2024 officially recognized crypto mining as a legal activity and introduced mandatory registration requirements for companies. However, according to Ivan Chebeskov from the Russian Ministry of Finance, the majority of mining operations remain outside the formal economy. Speaking to local media, Chebeskov stated, “Our primary goal was to bring this industry into the light, but the process is far from complete.”
New Regulations and Stricter Penalties on the Horizon
Chebeskov emphasized that efforts will continue to integrate the remaining 70% of miners into the legal framework. While specific next steps haven’t been revealed, earlier reports hinted at tougher penalties for non-compliant operators.
A report dated June 9 suggested that the Russian Ministry of Digital Development is working on a new bill to raise the fine for illegal crypto mining from 200,000 rubles to 2 million rubles (approximately $25,500).
Crackdown on Illegal Mining Operations Continues
Coinciding with Chebeskov’s comments, law enforcement in the Rostov region shut down another illegal mining farm. Authorities discovered 13 mining machines operating in a garage complex in the city of Bataysk. The case is now being investigated under Article 165 of the Russian Criminal Code.
Just a week earlier, another unauthorized mining setup was exposed in the Pribaikalsky region of Siberia, where a truck had been modified to draw electricity illegally from a local power line.
Legal Framework Sparks Controversy
Industry experts argue that the mining regulations introduced in 2024 fell short of fully legitimizing the sector. Nikita Zuborev, chief analyst at BestChange, commented that the rules primarily aim to formalize tax collection rather than support the industry’s growth.
Legal professionals have also raised concerns about the restrictive nature of the regulations — particularly the ban on foreign entities engaging in mining activities and limitations imposed on certain regions. These constraints have led to frustration among some market participants.
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