Bitcoin News Today: Russia Crypto Mining Firms Surge 10x After 2024 Regulatory Shift

Russia has seen a significant surge in its crypto mining sector, with the number of registered firms rising tenfold over the past six months. According to data from the Federal Tax Service (FTS), over 1,000 firms are now legally registered for crypto mining, up from just 91 prior to the implementation of a new regulatory framework in 2024 [1]. A senior Russian MP, Alexey Nechaev of the New People Party, highlighted the shift during a July 23 State Duma session, stating that “the future belongs to cryptoassets” and emphasizing the importance of regulation over outright bans. Nechaev argued that the previous gray-market status of mining operations had led to systemic issues, including power grid overloads and lack of tax compliance.

The regulatory change, introduced in late 2024, requires all mining firms consuming over 6,000 kWh of electricity monthly to register with the FTS. Registered entities must disclose mining volumes and crypto wallets, and they are now subject to taxation. Industry estimates suggest this could generate over $500 million annually for the Russian Treasury [1]. Nechaev praised the approach, noting that prior attempts to suppress mining through fines and restrictions had driven operations underground.

The Association of Industrial Miners reported that Russia now ranks second globally in Bitcoin mining volume, trailing only the United States. As of this summer, Russian miners’ hashrate exceeded 150 EH/s (exahash per second), accounting for 16.6% of the global hashrate. Domestic experts estimate that Russian miners generated approximately $4.7 billion worth of Bitcoin in 2024, based on a hashrate equivalent to BTC 40,000 [1].

In addition to regulatory compliance, Russian miners are increasingly investing in AI technologies. Nechaev revealed that crypto firms spent 5 billion rubles ($63 million) on AI development this year, signaling a strategic shift toward innovation. He also noted that miners are now prioritizing domestic investments over overseas capital outflows, a contrast to earlier practices when many operations operated clandestinely.

The sector’s expansion has also brought infrastructure improvements. Nechaev stated that power outages linked to mining activities—previously a widespread issue in regions with weak grid capacity—have “largely stopped.” The FTS’s register now includes firms that previously operated informally, integrating them into the formal economy.

While the government has focused on regulating legal operations, a separate push has emerged to target illegal miners. In July 2025, a senior policymaker proposed recognizing crypto as intangible property to facilitate court-ordered seizures from unregistered entities. This measure aims to curb illicit mining while reinforcing the legitimacy of the regulated sector.

The rapid growth of Russia’s crypto mining industry reflects a broader acceptance of digital assets in the economy. As firms adapt to the new regulatory environment, the sector’s contributions to tax revenues and technological innovation are expected to grow. However, challenges remain, including the need for sustained grid stability and international competition in mining markets.

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/]