Russia's Registered Crypto Miners Jump 10x Following 2024 Registration Mandate

Russia has witnessed a tenfold surge in registered cryptocurrency mining firms since the beginning of 2025, with over 1,000 companies now officially listed with the Federal Tax Service (FTS) [1]. This dramatic rise follows the implementation of a 2024 law requiring all miners using more than 6,000 kWh of electricity monthly to register. The legislation mandates compliance with tax reporting and operational transparency, including data on mining volumes and wallet addresses [1].

Alexey Nechaev, a senior Russian legislator and head of the New People party, highlighted the shift during a State Duma session on July 23, emphasizing that crypto mining is no longer a target for bans but a recognized pillar of Russia’s economic future. “The future belongs to cryptoassets,” he stated, underscoring the government’s strategic pivot from enforcement to regulation [1]. Prior to the law’s enactment, only 91 firms were officially registered, creating a shadow market where miners operated without legal recognition or tax obligations [1].

The regulatory framework aims to generate significant state revenue, with estimates suggesting annual tax contributions of over $500 million for the Russian Treasury [1]. Nechaev criticized earlier attempts to suppress mining through fines and restrictions, which he argued exacerbated grid instability and pushed operations underground. Under the new system, miners are now incentivized to comply with energy usage limits and contribute to public finances, a move analysts say could stabilize power infrastructure while legitimizing the sector [1].

Industry data further underscores the country’s growing influence in global crypto markets. The Association of Industrial Miners reported that Russia’s Bitcoin hashrate has exceeded 150 exahashes per second (EH/s), accounting for 16.6% of the global network and ranking second worldwide behind the United States [1]. In 2024 alone, domestic experts estimate Russia mined approximately $4.7 billion worth of Bitcoin, reflecting the sector’s economic scale.

Beyond traditional mining, the industry is expanding into AI development. Nechaev noted that miners invested 5 billion rubles ($63 million) in AI initiatives this year, signaling a broader integration of blockchain and emerging technologies [1]. This diversification aligns with Russia’s efforts to position itself as a hub for innovation, though challenges remain. A recent push to classify crypto as intangible property—facilitating legal asset seizures for illegal miners—highlights ongoing debates over regulatory boundaries [1].

The surge in registrations has also coincided with a reduction in power outages previously linked to energy-intensive mining operations. Nechaev attributed this to better grid management and adherence to energy quotas under the FTS’s oversight [1]. However, the long-term sustainability of this growth will depend on balancing industrial demand with national energy priorities.

Sources: [1] [Russia Reports x10 Rise In Registered Crypto Mining Firms] [https://cryptonews.com/news/russian-authorities-report-x10-rise-in-registered-crypto-mining-firms/]