"Russian Miners Fear Data Leak as Moscow Mandates Wallet Registry"

Russian Bitcoin miners are expressing concerns over a new government mandate that requires wallet addresses to be included in a national registry. Lawmaker Anton Gorelkin highlighted these concerns in a recent Telegram post, warning that geopolitical rivals could exploit leaked addresses, posing a significant threat to mining operations, especially in light of potential sanctions.

Gorelkin stated, "Russian miners are worried about the safety of sensitive data collected by the state, such as crypto wallet numbers. A leak of this information could be a major gift to our geopolitical opponents." Despite these concerns, Russia's tax authority assured Gorelkin that the registry is housed in a secure internal system with strict access controls, minimizing the risk of leaks. However, skepticism persists, as cybersecurity experts often emphasize that no system is entirely immune to breaches.

These issues arise as Bitcoin mining has become a lucrative business in Russia, with demand for industrial mining equipment surging threefold in 2024. However, authorities have also stepped up efforts to collect information on these miners and are pushing to introduce a nationwide registry for crypto-mining equipment, making registration compulsory for all mining activities and adding another layer of government scrutiny.

Russian miners' fear of sanctions is well-founded, as Western nations, including the US, have imposed heavy restrictions on Russia's economy, cutting off access to traditional financial networks and targeting key industries such as energy, trade, and technology. Last month, the US Treasury Department announced a new wave of sanctions aimed at reducing Russia's energy revenues, blocking two active liquefied natural gas projects, a large Russian oil project, and third-country entities supporting Russia's energy exports.