In The Shadows: Two-Thirds Of Crypto Miners Still Unregistered In Russia

Russia’s Deputy Minister of Finance revealed that only one-third of crypto mining firms are operating legally despite the new law requiring mining entities to register with the Federal Tax Service (FTS).

Crypto Miners Operating In The Shadows

On Thursday, Russia’s state news agency TASS reported that more than half of crypto mining companies are still operating without registration with the Federal Tax Service. According to the report, Deputy Minister of Finance Ivan Chebeskov stated that only 30% of miners have registered since the new law came into effect in November 2024.

For context, the Russian government approved a law in August of last year to legalize crypto mining in the country. The legislation, enacted on November 1, 2024, aims to combat illegal mining activity and offer exclusive rights to entities registered with the FTS. By December 2024, over 100 mining companies had filed their application.

As reported by Bitcoinist, FTS’s Head Daniil Yegorov revealed that 150 firms had applied for registration just one month after the law was enacted. However, he considered the number was low and expected a larger number of applicants in the coming months.

Seven months later, the number is still low, as only one-third of mining entities have applied to register. Another two-thirds need to come clean and enter the register,” Chebeskov affirmed at the 28th St. Petersburg International Economic Forum (SPIEF).

The Deputy Minister of Finance asserted that the goal was to legalize the mining sector and “bring this industry out of the shadows as much as possible.” He also noted that they have not achieved their objective, adding that the Ministry will work to complete it.

We have not yet completed this process. So far, only 30% of all miners have been entered into the register maintained by the Federal Tax Service, and this process is still far from complete (…) Therefore, we will work to complete this process.

Russian Authorities To Tighten Rules

Notably, the Ministry of Digital Development is reportedly working on adding a new article to the Code of Administrative Offenses (CoAO) to provide fines for illegal mining and failure to provide information about mined crypto.

According to recent reports, the amendment, which is undergoing interdepartmental review, could introduce four types of offenses, three of which will be related to crypto mining.

Additionally, judges would gain the authority to confiscate crypto assets from anyone mining illegally, aiming to stop unregistered operations in Russia. The amendment would also tackle crypto payments, imposing fines on those who transact outside the Central Bank’s Sandbox.

In April, Russian Finance Minister Anton Siluanov announced a plan to establish a dedicated exchange for “highly qualified investors” alongside the Bank of Russia (BOR), aiming to “legalize crypto assets and bring crypto operations out of the shadows.”