Russia aims to be the world's second largest BTCMining country: the rise under the energy advantage and policy game.

Gate, in the global map of Cryptocurrency Mining, Russia is rising at an unprecedented speed, with the potential to challenge the United States and become the world's second largest BTC Mining center. With its unique energy advantage, growing institutional investments, and subtle shifts in government attitudes, Russia is gradually consolidating its key position in the digital gold rush. However, the path to regularization is not smooth, and the ongoing game between regulation and underground Miners continues.

One, the Mining boom driven by energy advantages and institutional investment

Russia's core driver to becoming a new highland for BTCMining lies in its abundant and relatively inexpensive energy resources, especially in the Siberian region. Vasily Girya, CEO of GIS Mining, pointed out at the St. Petersburg International Economic Forum (SPIEF-2025) that as of the first half of 2025, the total value of encryption assets held by Russian citizens and institutions has exceeded 2 trillion rubles (approximately 254 billion US dollars), reflecting that the country sees encryption assets as a strategic investment category.

Analysts emphasize that with the attraction of low-cost electricity, Russian institutional investors are continuously expanding the scale of BTC mining farm orders, and industrial-grade Mining facilities are accelerating expansion. The influx of large financial and industrial groups, as well as the rise of distributed self-generated power facilities, have injected strong momentum into the expansion of the Russian Mining ecosystem. Girya predicts that the Russian Mining industry has the potential to increase its capacity by 7 gigawatts (GW) in the next three years, making it poised to surpass all countries except the United States.

2. Recognition of President Putin and the complexity of policies

The Russian government has always had a dynamic attitude towards BTC. President Vladimir Putin has openly acknowledged the advantages of BTC, stating that it cannot be banned and emphasizing its unstoppable position in the global financial system. This high-level recognition undoubtedly legitimizes BTC mining within Russia and further promotes the development of the industry. Putin even revealed at the Eastern Economic Forum (EEF) in September 2024 that Russia mined 54,000 BTC in 2023, bringing in over 500 million USD in tax revenue for the country, showcasing its increasingly strong presence in the cryptocurrency field.

However, despite high-level support, Russia's Crypto Assets Mining policy still faces challenges. The country is striving to bring underground Miners into the mainstream, but many Miners prefer to operate outside the regulatory framework to maintain anonymity and flexibility. A report by TASS shows that currently only less than 30% of Miners are registered with the Federal Tax Service (FTS), meaning that most Mining businesses are still operating in the gray area, leading to loss of tax revenue for the government and a lack of proper regulation in the industry.

Three, new regulations issued: normalization and challenges exist

To address this situation, the Russian Ministry of Digital Development is drafting new regulations to crack down on illegal Crypto Mining. According to Cryptonews, on June 11, the draft stipulates that individuals engaging in illegal Mining may face fines of 100,000 to 200,000 rubles, while companies could be fined up to 2 million rubles, and the involved Cryptocurrencies will be confiscated. The new regulations also explicitly prohibit the use of Cryptocurrencies for payment settlement, with offenders facing fines of up to 1 million rubles. In addition, mining operators are required to report Mining data and wallet addresses to the financial regulatory authority.

These new regulations are aimed at promoting industry regularization, but they will also bring new challenges. The central bank stated that confiscating encryption assets will be the most effective deterrent, but how to effectively balance regulation and industry development will be a key issue that the Russian government needs to face. Currently, Russia's current policy allows household Mining (monthly electricity consumption not exceeding 6000 kWh), but restrictions have been implemented in 10 regions, indicating that regulation is still being explored and adjusted.

Four, global impact and future prospects

Russia has the potential to become a major participant in BTCMining, and its rise is part of the global trend of increasing adoption and investment in Cryptocurrency. As more and more countries recognize the potential of BTC and other Cryptocurrency, the industry is expected to experience significant growth. Russia's energy advantage, rising institutional investment, and a shift in government attitude position it to compete with the United States.

Despite facing regulatory and structural challenges, Russia continues to develop its CryptoCurrencyMining industry. Its abundant energy resources, especially in the Siberian region, give it a significant advantage. Constant investments and wise strategies are driving rapid expansion in the industry. Russia is emerging as a major participant in BTCMining, which could have far-reaching implications on the global financial landscape, potentially changing our views on currency, investment, and economic sustainability.

Conclusion:

Russia is at the forefront of becoming a global BTCMining giant. Despite the challenges on the path to regularization, its unique energy endowment, increasingly rising institutional interest, and high-level recognition of the potential of Cryptocurrency all point to a vibrant future. Russia's experience will provide valuable reference for other countries, demonstrating how to find a balance point in energy advantage, policy games, and the global encryption wave, to jointly shape the future of digital finance.