Russia Tightens Control, Majority of Crypto Miners Unregistered

2 mins mins

Key Points:

Russia’s crypto regulations struggle with miner non-compliance.
70% of miners remain unregistered.
Potential impact on tax revenue and industry compliance.

Russia’s 2024 crypto regulations aimed to formalize mining operations, yet 70% of miners remain unregistered as of June 2025, according to Ivan Chebeskov of the Ministry of Finance. This regulatory gap highlights ongoing challenges for Russian authorities in enforcing compliance and capturing tax revenue from the mining sector.

Despite these regulations, many mining enterprises choose to operate without registration. This has significant implications for state tax revenues and the formalization of the industry. The lack of registration leads to potential non-compliance penalties, and unregistered companies risk fines and asset seizures.

Crypto Regulations Mirror Kazakhstan’s Struggles

Russia implemented new cryptocurrency laws in late 2024, mandating registration for mining companies. These laws included legal definitions and outlined obligations for the sector. President Vladimir Putin formalized these regulations, aiming for a more structured mining industry.

Reactions from the Russian government reflect concern. Ivan Chebeskov from the Ministry of Finance stated, “70% of mining enterprises are still operating in the ‘underground’.” This sentiment echoes the ongoing enforcement challenges faced by the authorities.

“70% of mining enterprises are still operating in the ‘underground’ and have not yet completed their registration.” — Ivan Chebeskov, The Block Beats

Market Data and Insights

Did you know? The 2024 regulations mirrored earlier measures in Kazakhstan, where initial miner registration mirrored the challenges of actually reducing “underground” operations.

Bitcoin (BTC) currently trades at $104,802.48, per CoinMarketCap, boasting a market cap of $2.08 trillion. Although BTC’s dominance holds at 64.06%, its 24-hour trading volume dipped by 10.08%. Notably, BTC’s price rose 24.71% over two months, as monitored until June 19, 2025.

bitcoin-daily-chart-1659 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 11:45 UTC on June 19, 2025. *Source: CoinMarketCap*

Experts from Coincu emphasize the potential for increased informal mining activities, challenging regulatory effectiveness. Historical trends suggest regulatory attempts often push activities underground, instead of promoting compliance. Data from the industry’s past supports this expectation.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.