Russia will mine nearly 54,000 Bitcoins in 2023, says industry expert

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About 54,000 Bitcoins (BTC), worth about $3 billion, were mined in Russia last year, Sergey Bezdelov, director of the Industrial Mining Association, said at the Eastern Economic Forum 2024, first reported by the news outlet Izvestia

According to Bezdelov, this could generate around 50 billion rubles in taxes for the Russian government. He expects the recent legalization of cryptomining in Russia to attract more investors and increase tax revenues.

On August 8, Russian President Vladimir Putin signed a law legalizing crypto mining in the country. This means that crypto mining is now a legitimate economic activity and legal entities can be part of it with proper registration or within specific power consumption limits.

The new legal framework is also expected to boost infrastructure investment and contribute to overall economic growth.

Legalizing mining may be just the first step toward expanding crypto operations in Russia, which has long faced economic sanctions. A number of recent events indicate that national authorities are turning to alternative payment systems, such as crypto payments, to circumvent sanctions.

Last month, a local media outlet reported that Russia plans to establish at least two cryptocurrency exchanges in Moscow and St. Petersburg. These exchanges will serve as hubs for international trade and are part of a broader strategy to improve economic cooperation with the BRICS countries.

Bloomberg said the country began testing crypto exchanges earlier this month. This is part of a strategy to mitigate the impact of international sanctions.

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