Russian Bitcoin Miners: Industrial Players ‘Mined BTC 54,000 in 2023’

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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September 4, 2024 19:30 EDT

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A Russian Bitcoin (BTC) mining industry leader says that industrial players in the country mined BTC 54,000 (worth around $3 billion) last year.

The comments came from Sergey Bezdelov, the head of the Industrial Mining Association, the newspaper Izvestia reported.

Big Tax Windfall Incoming?

Bezdelov was speaking at a crypto mining-related session at the Eastern Economic Forum in Vladivostok.

The industry group leader added that “according to our estimates,” the industrial crypto mining sector is set to land the Russian Treasury an “annual increase in tax revenue” worth some 50 billion rubles ($559 million).”

Bezdelov said that he expected fresh cash injections as big businesses back industrial miners.

And he hinted that this would allow Russian Bitcoin miners to build more data centers and buy new equipment.

“New investors are coming. New infrastructural investment is coming.”

Bezdelov

And the industry chief added that this would all translate to higher wages. He said that the cash boost would help improve “structure” in the sector.

And he said it would provide better “labor power,” as well as “new IT-related job opportunities.”

New Crypto Regulations Roll Out

As of September 2, Russian crypto mining players must start registering their operations with a central regulatory body.

They will also be eligible to pay tax on their earnings for the first time at the end of the current financial year.

However, Moscow has yet to decide exactly how miners will be taxed. The Central Bank wants to ensure miners sell their coins for fiat immediately.

It wants to stop them from holding them in crypto wallets until market prices become favorable.

As of November this year, Russian “legal entities and individual entrepreneurs included on a register curated by the Ministry of Digital Development” will be granted “the right to engage in mining.”

Private Russian Bitcoin miners will also be allowed to continue their activities, provided they do not exceed new electricity usage quotas.

Russian Bitcoin Miners to Remain Focused on BTC

Bezdelov and others have previously stated that upwards of 90% of industrial Russian crypto miners focus their efforts on Bitcoin.

Smaller numbers of industrial players reportedly prefer to mine Ethereum (ETH) and high-cap altcoins like Litecoin (LTC).

Earlier this year, Bezdelov said that the Russian Bitcoin mining industry may be set for a $4 billion boost.

However, he warned Moscow not to raise tariffs for crypto miners to prohibitively high levels.