Russia Halts Expansion of Crypto Mining Ban, Highlights Tax and Energy Policy Shifts

Russian authorities have escalated enforcement against illegal cryptocurrency mining, with notable asset seizures tied to electricity theft and corruption. In a high-profile case, a former energy executive in Amur Oblast lost approximately ₽7 million ($88,570) in Bitcoin due to illegal power use for home mining. These actions come as Russia drafts legislation to define crypto as intangible property, streamlining digital asset seizures in criminal cases—a shift from previous approaches under anti-theft and anti-corruption laws. More recently, the government decided to suspend further expansion of its regional crypto mining bans, fearing the loss of tax revenues and energy profits. After internal review led by Deputy Prime Minister Alexander Novak, authorities halted stricter restrictions in additional areas. Instead, the Ministry of Energy is tasked with incentivizing miners to relocate operations to energy-surplus regions and ensuring compliance with registration and tax payments. This strategic pivot reflects Russia’s increased recognition of the fiscal and energy contributions from crypto mining. For traders, this signals ongoing regulatory uncertainty but also potential stability and investment opportunity in energy-rich Russian regions. The evolving legislative landscape could alter mining profitability and market activity, especially if new laws ease asset seizures and foster regional mining investment.