Russia's Crypto Mining Boom: Legalization Accelerates Industry Growth and Economic Impact

The Russian government notes a remarkable increase in officially registered cryptocurrency miners, with the numbers growing more than tenfold in the past six months. This surge is attributed to the legalization law passed in autumn 2023, leading to over 1,000 registered companies that contribute taxes and bolster the industry. This legalization has not only transitioned the sector from shadow operations but also resolved previous issues related to electricity shortages. Miners have invested around 5 billion rubles in artificial intelligence developments, positively impacting the economy. However, in regions facing energy deficits, mining activities remain restricted, with some bans scheduled until 2031. According to the Association of Industrial Miners, Russia holds a steady second place globally in Bitcoin mining, accounting for about 16.6% of the world’s hash rate.