Sergey Bezdelov, the head of the Industrial Mining Association in Russia, revealed that industrial players in the country mined approximately 54,000 Bitcoin (BTC) last year, equivalent to around $3 billion. During a session at the Eastern Economic Forum in Vladivostok, Bezdelov mentioned that the industrial crypto mining sector is expected to contribute around 50 billion rubles ($559 million) annually to the Russian Treasury through tax revenue. This influx of funds is anticipated to come from big businesses investing in industrial miners, allowing them to expand their operations, build new data centers, and purchase new equipment. As a result, Bezdelov predicts higher wages and the creation of new job opportunities in the sector.
Following new regulations that went into effect on September 2, Russian crypto mining players are now required to register their operations with a central regulatory body and will have to pay taxes on their earnings for the first time by the end of the current financial year. However, the specific taxation policies for miners are yet to be determined by Moscow. The Central Bank is pushing for miners to sell their coins for fiat currency immediately after mining them, rather than holding onto them in crypto wallets until market conditions improve. Starting in November, Russian legal entities and individual entrepreneurs included on a register curated by the Ministry of Digital Development will be permitted to engage in mining activities, with private Russian Bitcoin miners allowed to continue as long as they adhere to new electricity usage quotas.
Bezdelov and other industry experts have indicated that the majority of industrial crypto miners in Russia focus their efforts on mining Bitcoin, with Ethereum and high-cap altcoins like Litecoin being mined by a smaller number of players. Earlier in the year, Bezdelov had mentioned the potential for a $4 billion boost to the Russian Bitcoin mining industry, but cautioned against implementing excessively high tariffs that could deter miners. The increasing interest and investment in industrial crypto mining in Russia is viewed as a positive development for the sector, paving the way for growth, technological advancements, and economic opportunities.
The expected tax windfall from the industrial crypto mining sector in Russia is a significant development that could potentially inject billions of dollars into the country’s economy. With new regulations in place, miners are now required to adhere to registration and taxation requirements, marking a shift towards a more formalized and regulated industry. The inclusion of industrial players and private miners in the mining ecosystem, along with the focus on Bitcoin mining, indicates a growing interest and participation in cryptocurrencies in Russia. This evolving landscape presents opportunities for growth, innovation, and economic diversification within the crypto mining sector in the country.
