Russia cracks down on illegal crypto mining and launches a national mining rig registration system.

In order to strengthen the crackdown on illegal crypto asset miners, the Russian government has officially launched a nationwide mining equipment registration system, aimed at accurately identifying unregistered mining activities.

According to local media reports, the Russian authorities have completed the compilation of the registration system and have distributed it to Mining activity active areas.

Joint actions by multiple departments to promote industry legalization and energy saving

This initiative is jointly promoted by the Russian Ministry of Energy, the Federal Tax Service (FNS), and the Ministry of Digital Development, and is part of its national strategy for the legalization of Crypto Assets Mining, aimed at reducing unauthorized electricity usage.

Petr Konyushenko, the Deputy Minister of Energy of Russia, stated that the national registration system will enable the government to accurately identify electricity consumers used for mining purposes. He emphasized that this is crucial for ensuring that crypto asset miners are properly regulated and taxed based on actual electricity consumption.

Knyushenko confirmed that the list of miners has been sent to areas with high mining activity. The plan for this sign up system was initiated as early as early 2025.

Sign Up System Aids Regional Ban Enforcement

Authorities stated that the registration system will also support enforcement in areas where Mining is prohibited due to power shortages. Since November of last year, Russia has banned Crypto Assets mining until March 2031 in ten regions to prevent power outages during peak electricity usage.

Russia Crypto Assets Mining Regulatory Framework

The establishment of this registration system is part of a broader Crypto Assets Mining legal framework in Russia, which was passed in 2023. According to this law, Russian citizens, registered individual entrepreneurs, and legal entities are allowed to engage in Crypto Assets mining.

• Individual Miners: Mining is allowed without registration within the energy consumption limits set by the government.
• Corporate and individual business miners: Must sign up mining sites or mining businesses with the Federal Tax Service (FNS).

Tax Incentives and Regulatory Parallelism

To encourage transparency and support adoption, Russia has removed the value-added tax (VAT) on crypto assets purchases. Subsequently, to regulate the industry, the government also introduced a 15% tax on profits from crypto mining, which is calculated based on the market value of the mined assets.

Low compliance rate, law enforcement actions escalate

Despite the legal framework, many miners still operate outside official regulation, often circumventing commercial electricity prices by tapping into residential power lines. According to a departmental report disclosed last month by Ivan Chebeskov, Deputy Minister of Finance of Russia, as of June 2025, only 30% of miners are registered with the FNS.

Chebeskov stated at the time that the government is working to bring the remaining 70% of miners into compliance, but did not provide further details on enforcement measures or timelines.

Russia's Crackdown on Illegal Mining Cases

Over the past year, Russia has been curbing illegal operations by targeted inspections and court orders to shut down unauthorized miners.

According to a previous report by crypto news, prosecutors shut down an open-pit mine in the Krasnoyarsk Krai that was operating on state-owned land using false documents, in one of the largest cases to date. The mine covers an area of 30,000 square meters and generates monthly revenue of approximately 4.6 million rubles (about 58,000 USD).

Officials also reported cases of utility personnel being bribed to condone illegal wiring, as well as hackers using smart home devices to build covert mining networks.