- Russia mined 54,000 Bitcoins in 2023, generating $556 million in tax revenue, marking a surge in the nation’s crypto industry.
- New Russian law legalizes cryptocurrency mining starting in November, attracting new investors and infrastructure growth.
- Industrial crypto mining is expected to increase tax revenues as regulations stabilize and more investors join the sector.
Russia’s growing cryptocurrency industry, miners in the country produced 54,000 Bitcoins in 2023. This output, valued at more than $3 billion, brought approximately 50 billion rubles ($556 million) in tax revenue to the Russian government.
The figures were announced by Sergey Bezdelov, chairman of the Russian Industrial Mining Association, during the Eastern Economic Forum (EEF-2024). Notably, this surge in mining comes as Russia prepares to legalize cryptocurrency mining under new legislation signed by President Vladimir Putin, effective from November.
Tax Windfall as Bitcoin Mining Flourishes
Russian authorities are set to benefit further from the country’s expanding crypto mining sector. The 54,000 Bitcoins mined in 2023, combined with 50 billion rubles in taxes, highlight the industry’s economic impact. According to Bezdelov, this growth was made possible through industrial mining.
He emphasized that the tax revenues are poised to increase as new investors and infrastructure enter the market. With more regulations set to stabilize the sector, Russia stands to gain even more from mining operations. New investors, especially in infrastructure, are expected to contribute to the rising tax influx.
New Legislation to Regulate Cryptocurrency Mining
As the Russian government prepares to implement a legal framework for cryptocurrency mining, significant changes are underway. On August 8, President Putin signed a law that will regulate crypto mining from November.
Under this law, registered Russian legal entities and individual entrepreneurs will be permitted to engage in mining activities. Russians without entrepreneurial status will also be allowed to mine, albeit within government-set energy limits. Additionally, these individuals can become mining infrastructure operators if they are registered with the Ministry of Digital Development.
Economic Forum Highlights Potential Growth
The EEF-2024, taking place from September 3–6 in Vladivostok, served as a platform to discuss the expanding role of cryptocurrency in Russia’s economy. Bezdelov’s comments at the forum highlighted the potential for increased revenue from new investors and infrastructure.
With the regulatory environment growing, the future of Russia’s cryptocurrency mining industry appears promising. The Russian government is preparing for an influx of investment as new rules take effect, making it a key player in the global crypto sector.
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