Russia's Crypto Miners Dodge the Rules: Only 30% Playing by the Book!

Hold onto your hats, folks! In Russia, where the crypto scene is sizzling, a whopping 70% of miners are flying under the radar, totally ignoring the country's new mining regulations. Can you believe it?

Russia's trying to drag crypto mining out of the shadows and into the light of day, but it's like herding cats! The government's been busting its chops to legalize and regulate this wild west of digital currency, but the miners? They're not having it. The Finance Ministry dropped a bombshell on Tuesday, June 19, revealing that a measly 30% of miners are playing by the rules and registering with the tax folks.

Deputy Finance Minister Ivan Chebeskov is sweating bullets, trying to get these rogue miners to fall in line. "We're still in the trenches, fighting to bring these miners into the regulated economy where we can keep an eye on them and tax them properly," he said, wiping the sweat from his brow.

Chebeskov didn't mince words: "When we started regulating this industry, our goal was to yank it out of the shadows. We're not there yet. Only 30% of miners have signed up with the Federal Tax Service, and we've got a long way to go. We need to clean up the other two-thirds and get them registered. We won't stop until we've finished the job!"

But hold up, there's more! Starting in 2025, Russia's putting its foot down and banning crypto mining in certain regions with fragile infrastructure, especially during peak hours. They're trying to keep the power grid from collapsing under the strain of all those hungry mining rigs.

Russia's Bold Move to Tame the Crypto Mining Beast

In 2023, Russia threw down the gauntlet and legalized crypto mining as part of its grand plan to tax and regulate the industry. Then, in 2024, they slapped a 15% tax on mining profits, based on the market value when you cash out. But hey, they also gave a little back by axing the VAT on crypto purchases. It's a give-and-take, folks!

For the average Russian and their businesses, Bitcoin mining is like striking gold. With Russia's dirt-cheap energy prices, it's a no-brainer. Plus, with the country's low living standards and those pesky sanctions breathing down their necks, mining is a lifeline for both individuals and companies looking to make a buck.