Russia Faces Underground Mining Surge Despite Crypto Regulations: 70% Unregistered in 2025

Russia’s ambitious 2024 crypto mining regulations were designed to bring the country’s booming mining industry into a formal, taxable framework. Yet as of June 2025, the vast majority of miners remain in the shadows—reportedly, 70% still operate without official registration, amplifying the country’s enforcement and tax collection dilemmas.

Regulatory Crackdown Fails to Shift Most Miners Above Ground

The Russian government’s efforts to regulate cryptocurrency mining began in earnest with the introduction of new legal mandates in late 2024. These rules required all mining operators to register with authorities, adopting definitions and obligations shaped by presidential approval. However, according to Ivan Chebeskov of the Ministry of Finance, compliance has lagged, with only 30% of mining outfits completing the formal registration process. The trend toward non-compliance exposes the state to lost tax opportunities and raises the risk of enforcement actions, including potential fines and confiscations for those operating covertly.

Comparisons to Kazakhstan Reveal Persistent Challenges

Russia’s struggles bear a striking resemblance to those experienced in Kazakhstan, where parallel regulations saw many miners avoiding official oversight. Despite the Kremlin’s drive to formalize the sector, experts note that regulatory pressure often sends businesses underground, circumventing government goals. Ivan Chebeskov recently summarized the situation by stating, “70% of mining enterprises are still operating in the ‘underground’ and have not yet completed their registration.” The sentiment highlights the challenge Russian authorities face: balancing regulation with enforcement in a rapidly evolving digital industry.

Key Stats & Figures

• Unregistered Miners: 70% of Russian mining companies remain unregistered as of June 2025 (Ministry of Finance).
• Bitcoin Price: BTC trades at $104,802.48 with a $2.08 trillion market cap (as of June 19, 2025).
• Trading Activity: Bitcoin’s 24-hour volume fell by 10.08% even as the price jumped 24.71% over two months.
• Market Dominance: Bitcoin continues to command a 64.06% share of the crypto market.

Ongoing Non-Compliance Threatens Revenue and Oversight

The continued prevalence of unregistered mining operators raises significant concerns for Russian policymakers. The inability to formally capture a large segment of the industry not only hampers tax revenue collection but also complicates oversight and security efforts. Industry analysts, echoing observations from similar efforts in neighboring countries, warn that without improved compliance incentives, a large-scale informal mining market may persist and even expand.

Conclusion: What This Means for the Market

As Russia grapples with persistent non-compliance within its crypto mining sector, questions remain about the effectiveness of top-down regulation in such a decentralized industry. Unless new strategies emerge, the state may struggle to integrate the underground economy, minimize financial risks, and ensure a stable regulatory environment for digital assets moving forward.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. Always conduct your own research before making any investment decisions.