Russia's recent legalization of Bitcoin mining has triggered an unprecedented surge in demand for specialized mining equipment, with orders tripling in late 2024 compared to the previous year.
The landmark legislation, signed by President Vladimir Putin in November 2024, has positioned Russia as a global mining powerhouse, now commanding 16% of worldwide Bitcoin mining capacity and ranking second internationally.
The new regulatory framework introduces a balanced approach: small-scale miners using less than 6,000 kWh monthly operate registration-free, while larger operations face a 15% tax on mined Bitcoin value. This clarity, combined with Russia's abundant energy resources, has attracted both domestic and international investors, particularly from BRICS nations.
"Bitcoin mining represents an important asset diversification opportunity," notes Serge Bezdelov, director of the Industrial Mining Association, highlighting the sector's growing appeal.
However, the government maintains careful oversight. As of January 2025, mining restrictions apply in six North Caucasus regions, with seasonal limits in four additional areas, balancing industry growth with energy security. Russia has announced sweeping restrictions on cryptocurrency mining operations across multiple regions, implementing a complete ban in 10 territories that will last until 2031.
The Central Bank of Russia has also implemented new cryptocurrency transaction rules. Foreign contracts involving digital assets must now be registered with authorized banks, with reporting requirements for imports exceeding 3 million rubles ($30,000) and exports over 10 million rubles ($100,000).
This regulatory evolution marks Russia's emergence as a major player in the global cryptocurrency mining landscape, while maintaining strategic control over the industry's development.