70% of Crypto Miners in Russia Still Unregistered Despite New Regulations

Despite implementing new cryptocurrency mining laws in late 2024, Russia is facing difficulties in bringing the majority of its mining sector into legal compliance. Government officials have confirmed that 70% of crypto mining operations remain unregistered, posing challenges for tax enforcement and regulatory oversight.

New Laws Struggle to Pull Miners Out of the Shadows

Russia began enforcing two new crypto-related legislative acts in October and November 2024, aimed at formally recognizing crypto mining and requiring operators to register with the Federal Tax Service (FTS). These laws introduced official definitions for digital asset mining and mandated registration for both individual and corporate miners.

However, as of mid-2025, only 30% of miners have complied with registration requirements, according to Ivan Chebeskov, a senior official from the Ministry of Finance. Speaking at a public event covered by TASS, Chebeskov admitted that most of the industry still operates in a legal gray zone.

“When we introduced mining regulations, our goal was to bring the sector into the legal framework. But this effort remains incomplete,” Chebeskov stated.

Authorities Pledge Stricter Measures and Enforcement

Although Chebeskov did not outline specific upcoming policies, he emphasized that authorities will continue working to boost registration rates across the sector. Government insiders suggest more severe penalties may be introduced to penalize unregistered mining operations.

A report from Forbes Russia earlier in June revealed that the Ministry of Digital Development is preparing a proposal to raise fines for illegal mining. Under the draft bill, the current penalty of 200,000 rubles (~$2,550) could rise to as much as 2 million rubles (~$25,500).

Such measures aim to increase pressure on underground operations, which not only evade taxes but also strain local electricity grids—especially in regions where mining clusters have surged.

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Crackdown Continues: Illegal Mining Farm Busted in Rostov

On the same day as Chebeskov’s comments, Russian law enforcement announced the shutdown of another illegal crypto mining farm. The operation was uncovered in a garage complex in Bataysk, a city in the Rostov region.

Authorities confiscated 13 mining rigs, and a criminal case was opened under Article 165 of the Russian Criminal Code, which covers property damage and illegal enrichment. Local police confirmed that the farm had been operating without any legal permits or tax

declarations.

Read More: https://x.com/unocrypto_com/status/1935683936052531396

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Criticism Mounts Over Ambiguity in Mining Laws

While the Russian government frames its efforts as an attempt to bring transparency and control to the growing crypto sector, legal experts and industry analysts argue that the current laws fall short of full legalization.

According to Nikita Zuborev, chief analyst at BestChange, the new legislation primarily serves taxation purposes and lacks clear guidelines for operational compliance.

“These laws don’t really legalize crypto mining. They’re more about tax precision than industry development,” Zuborev noted.

In addition to registration mandates, the laws impose several restrictions, including:

• Bans on foreign individuals participating in mining operations within Russia

• Limitations on mining activities in certain energy-strained regions

Such constraints have made it difficult for mining firms to scale legally, especially in areas with inconsistent regulatory interpretation.

Conclusion: Registration Push Faces Resistance from Miners

Russia’s attempt to formalize its crypto mining industry faces a major hurdle: reluctance from miners to register and operate under government oversight. While authorities push for greater transparency and compliance, miners continue to operate in the shadows—citing regulatory ambiguity and operational restrictions.

With enforcement intensifying and higher fines looming, the coming months may prove pivotal for the future of crypto mining in Russia.