Russia’s Bitcoin Mining Potential and Regulatory Critique

Cryptocurrency market regulation in Russia is progressing at a sluggish pace, despite the sector’s potential to contribute significantly to the national budget. This was highlighted by participants at the RBC-Crypto forum titled “Mining and Cryptocurrencies: Architecture of Growth.”

According to the Industrial Mining Association, large data centers dedicated to cryptocurrency mining could provide liquidity for cross-border transactions exceeding 240 billion rubles.

Moreover, the introduction of specific legislation could resolve issues related to transactions between Russian businesses and foreign partners. However, after years of discussions, officials have made little progress on this matter, noted Andrey Lugovoy, the first deputy chairman of the State Duma Committee on Security and Anti-Corruption.

He remarked that the tone of discussions has changed — cryptocurrency is no longer equated with criminal activity.

“As of today, I will be frank and honest, the situation is appallingly bad, we have made no progress,” stated Lugovoy.

He also described the lack of cryptocurrency market regulation in Russia as “playing into the hands of the sanctions policy against the country.”

Anton Gorelkin, Deputy Chairman of the State Duma Committee on Information Policy, Information Technology and Communications, believes the current situation benefits only the Bank of Russia, providing it with “peace of mind.”

“From the perspective of the Central Bank, there are no Russian cryptocurrency users,” noted Gorelkin, referring to the regulator’s latest market research.

Forum participants also discussed the prospects of the DFA market. According to the Moscow Exchange, its “breakthrough” volume is estimated at 3-5 trillion rubles, a target achievable within three years.

Previously, the tax potential of mining in Russia, under balanced regulation, was estimated at 50 billion rubles annually after 2025.