Despite the new law, 70% of Miners in Russia continue to operate outside the legal framework, creating a special paradox: the tighter the law, the more strongly the industry develops.
According to a new report published by the Russian Ministry of Finance, after nearly a year of implementing the legal framework, most mining companies have not fully registered with tax authorities. Mr. Ivan Chebeskov, a representative of the ministry, acknowledges that the process of bringing this industry out of the gray zone is not yet complete, thus predicting a long and complex legal journey ahead.
To control more effectively, Russian authorities are building a two-pronged management strategy: increasing pressure through penalty measures while simultaneously promoting more robust law enforcement. Specifically, the new draft law aims to increase the fine for illegal mining tenfold, from 200,000 rubles to 2 million rubles (approximately 25,500 USD).
Additionally, law enforcement agencies frequently launch operations to dismantle illegal mining sites spanning from Rostov to Pribaikalsky, with diverse scales ranging from solid warehouses to mobile facilities disguised in trucks.
This widespread non-compliance stems from shortcomings in current regulations. Industry experts criticize the new law, arguing that its real objective is not to facilitate legal cryptocurrency mining development, but merely to establish a legal basis for more efficient tax collection.
Analyst Nikita Zuborev notes that the regulations come with significant restrictions, including banning foreign organizations from direct participation and imposing geographical activity limits, making the law a barrier rather than a development catalyst.
However, despite legal challenges and strict government actions, the crypto mining industry in Russia continues to witness strong growth. Major events like the Russian Blockchain Forum increasingly attract professional enterprises, from providing comprehensive data center construction services to operation and maintenance.
Particularly, Russia's advantage of low energy prices continues to strongly attract international investors, especially from China, who are seeking ways to circumvent legal barriers.
This reality clearly reflects that when economic motivation is strong enough, it will drive activities beyond legal limits, creating a parallel industry that is both public and covert, thus presenting Moscow with a challenging management puzzle.
