Cryptocurrency mining is now influencing the Russian currency market

Cryptocurrency mining has expanded to the point of influencing the Russian currency market and should be factored into its balance of payments, according to a representative of the Kremlin.

The sector has become Russia’s “hidden export” and is currently undervalued, noted the member of President Putin’s team who highlighted the growing importance of the mining industry for the country’s economy.

Russia is underrating crypto flows related to mining

Underestimated financial flows stemming from the mining of digital currency are causing incorrect forecasts for the exchange rate of the Russian ruble. That’s according to Maxim Oreshkin, Deputy Chief of Staff of the Presidential Executive Office, or the presidential administration in Moscow.

Oreshkin made the statement during the “Russia Calling!” international investment forum, held this week in the Russian capital. He was asked to comment on why the national fiat’s movements have been so difficult to predict lately.

The aide of President Vladimir Putin said it’s important to take into consideration how cash flows in the Russian economy have changed over the past few years.

He also suggested that crypto mining has become a key new component of Russian exports, thus influencing the currency market in the country, the business news outlet RBC reported.

Also quoted by Interfax and the official TASS news agency on Tuesday, the former minister of economic development elaborated:

“We have a new export item, an undervalued one, and that is cryptocurrency mining.”

Oreshkin emphasized that the amounts generated by the mining sector are already significant enough to refer to them as a “hidden export.”

Currency supply remains the same, but imports can now be paid with cryptocurrency as well, which also affects the Russian currency market, he further noted.

Cryptocurrency mining, as a supply chain, should be accounted for in Russia’s balance of payments, Oreshkin stated, pointing out that the Bank of Russia is responsible for that:

“I haven’t yet seen such estimates from the central bank. I know that work is underway in this area, but this is something we also need to factor into the balance of payments.”

The sector remains relatively unnoticed because its flows occur outside of standard channels, the high-ranking representative of the Kremlin concluded.

Mining is regulated but still largely unregistered

Russia legalized the minting of digital coins last year. Recognized as a legitimate business activity, the industry has seen significant growth.

To legally engage in their country’s first regulated crypto activity, companies and individual entrepreneurs are required to register with the federal tax authority.

However, less than a third of active mining enterprises have done that so far, according to the government’s own estimates.

An advisor to the Russian parliament on crypto regulation recently urged for an amnesty that could bring more crypto miners out of the shadow economy.

In the absence of rules regulating domestic exchange, a lot of the mined cryptocurrency likely ends up traded on foreign platforms, but the authorities in Moscow now want to properly regulate the space.

An experimental legal regime (ELR) established earlier this year allows Russian firms to use cryptocurrencies in foreign trade but offers limited access to crypto assets.

Softening its long-term stance against permitting the circulation of cryptocurrencies in the country’s economy, the Bank of Russia recently indicated it’s ready to expand investor access to crypto and urged the adoption of the necessary legislation in 2026.

The monetary authority also made it clear it intends to allow banks to work with cryptocurrencies and authorize funds to invest in crypto derivatives. The regulator permitted the offering of these instruments in May.

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.