Russia Establishes National Registry to Curb Illegal Crypto Mining

Russia has intensified its efforts to combat illegal cryptocurrency mining by establishing a national registry for mining equipment. This centralized database aims to manage and track all mining operations within the country, addressing issues of electricity misuse and illegal activities. The registry will help identify and crack down on miners who dodge tax payments and those who illegally tap into electricity networks, particularly in energy-intensive regions.

The initiative, spearheaded by the Russian Energy Ministry, is part of a broader strategy to enhance tax revenue and ensure that cryptocurrency mining operations comply with legal standards. By compiling a comprehensive list of mining rigs, authorities hope to curb the unauthorized use of electricity and promote transparency in the industry. This move is expected to have significant implications for both Bitcoin and Ethereum miners operating within the country, as they will be required to register their equipment and adhere to regulatory guidelines.

The crackdown on illegal mining activities is not new for Russia. Law enforcement and other officials have been actively targeting mining facilities that operate outside the legal framework, particularly those that siphon electricity from the national grid without proper authorization. The establishment of the national registry is a proactive step to formalize the industry and bring all mining operations under regulatory oversight.

The registry will serve as a centralized database, providing a clear and organized system for monitoring and managing cryptocurrency mining activities. This will not only help in identifying illegal operations but also in ensuring that legitimate miners contribute to the country's tax revenues. The move is seen as a crucial step in regulating an industry that has often operated in a legal gray area, leading to significant losses in electricity and tax revenues.

This initiative is a joint effort by the Ministry of Energy, the Federal Tax Service, and the Ministry of Digital Development. The registry has already been compiled and distributed to regions with high mining activity. Deputy Energy Minister Petr Konyushenko stated that the registry will allow the government to accurately identify consumers using electricity for mining purposes, ensuring that crypto miners are subject to appropriate regulatory oversight and taxed in line with their actual energy consumption.

Konyushenko confirmed that the list has already been sent to regions with elevated mining activity, as plans to introduce this registry were already underway since early 2025. The Ministry of Energy initially proposed the plan for a national registry in February, which later received formal backing from the Ministry of Industry and Trade as well.

The registry will also support enforcement in areas where mining is banned due to power constraints. Since November, Russia has prohibited mining in ten regions until March 2031 to prevent blackouts during periods when electricity demand is high. The formation of the registry ties into Russia’s broader legal framework for cryptocurrency mining, which was adopted in 2023. Under the law, crypto mining has been permitted for Russian citizens, registered individual entrepreneurs, and legal entities.

While individuals can mine without registration if they stay within government-set energy limits, businesses and sole proprietors are required to register with the Federal Tax Service. To encourage transparency and support adoption, Russia removed VAT on crypto purchases. Then, in a move to formalize the sector, the government also introduced a 15% tax on crypto mining profits, calculated based on the market value of mined assets.

Despite the legal framework, many miners continue to operate outside official oversight, often tapping into residential power lines to avoid commercial tariffs. As of June 2025, only 30% of miners had registered with the FNS, Deputy Finance Minister Ivan Chebeskov disclosed in a report from the ministry last month. At the time, he said that the government was working to bring the remaining 70% into compliance, though no further details were provided on enforcement measures or timelines.

Over the past year, Russia has tried to keep illegal operations in check via targeted inspections and court-ordered shutdowns of unauthorized mining sites. In one of the largest cases to date, prosecutors shut down an open-air mining site in Krasnoyarsk Krai that operated on state-owned land under false documentation. The site spanned 30,000 square metres and generated roughly 4.6 million rubles in revenue per month. Officials have also reported instances of utility workers accepting bribes to overlook illegal connections and hackers exploiting smart home devices to build covert mining networks.

Overall, the launch of the national crypto mining registry is a significant development in Russia's efforts to regulate the cryptocurrency mining industry. By addressing illegal activities and promoting transparency, the government aims to create a more stable and compliant environment for cryptocurrency mining, benefiting both the industry and the broader economy.