A Regulated but Divided Industry

While Russia has established a legal framework for industrial cryptocurrency mining, a recent investigation by Russian media outlet Ren TV reveals a thriving underground sector costing the country millions annually in stolen electricity and unpaid taxes. Although major firms like BitRiver and Intelion operate within the law, many smaller miners reportedly refuse to comply with regulations to avoid high power tariffs and tax obligations.

The legitimate side of the industry has a substantial economic footprint. Mikhail Brezhnev, co-founder of mining supplier 51ASIC, estimates that daily mining income across Russia is approximately 1 billion rubles. He noted that since mined cryptocurrency can be used to settle import bills directly, there is a strong case for including these financial flows in official statistics.

Taxation and Oversight Measures

Russian regulators have put specific oversight measures in place. Legal entities and sole proprietors engaged in mining must register with the Federal Tax Service, while hosting providers are tracked in a separate registry. Household miners are exempt from registration only if their monthly electricity consumption stays below 6,000 kWh, though all income must still be reported. The tax structure is steep, with corporate mining taxed at 25 percent, while individuals face progressive rates from 13 to 22 percent. Non-residents are taxed at a flat 30 percent.

Despite these rules, many independent operators allegedly resort to illegal tactics such as meter manipulation, bribery, and secret deals with utility workers. This widespread evasion pushes a significant portion of the industry underground, leading to billion-ruble losses for the state budget and forcing households and legitimate businesses to absorb the cost of stolen electricity.