Russia’s Bitcoin mining demand triples amid regulatory shifts and price rally
Bitcoin mining activity in Russia has surged as citizens and businesses seek additional income, with demand for industrial mining equipment tripling compared to early 2023. This increase aligns with a significant price rally for Bitcoin in 2024, leading to substantial growth in institutional miners' reserves. Regulatory adjustments have facilitated this expansion, as the Russian government legalized crypto mining under specific guidelines, allowing individuals to mine without registration if energy usage is below 6,000 kWh monthly. Updated tax reforms exempt crypto transactions from value-added tax but impose a 15% tax on mined assets based on market value at receipt. Mining facilities must report user activities for compliance. Despite growth, Russia has imposed a mining ban until 2031 in 10 energy-strapped regions to balance energy consumption with economic priorities.
