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).
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.
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.
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.
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.
