Russian lawmaker: Illegal cryptocurrency mining causes approximately $250 million in economic losses annually.

Nikolay Shulginov, Chairman of the Energy Committee of the Russian State Duma, stated that illegal cryptocurrency mining activities cost Russia nearly 20 billion rubles (approximately $250 million) annually for the country and economy. Shulginov pointed out that illegal mining leads to power shortages, overloading the power grid, and impacting other electricity demand, including for social infrastructure and new housing construction. Direct losses to the energy system exceed 10 billion rubles, with tax revenue losses reaching approximately 9.6 billion rubles. These figures were provided by the Stolypin Institute for the Economy of Growth. Although Russia officially legalized cryptocurrency mining, including Bitcoin, at the end of 2024, allowing businesses and individuals to conduct mining activities upon registration and tax payment, less than one-third of miners have currently completed the necessary declarations. Some regions have implemented bans on mining due to power shortages, but with limited effectiveness. Shulginov revealed that the Irkutsk region in Siberia remains the most concentrated area for illegal mining, with the highest number of underground mining operations uncovered in 2025. To combat these activities, Russia has submitted a bill proposing fines of up to 2 million rubles for illegal mining, with repeat offenders facing fines of up to 10 million rubles, and does not rule out the introduction of criminal liability. (cryptopolitan)