Due to illegal mining by cryptocurrency miners, Russia loses millions of dollars each year

ChainCatcher news, illegal and quasi-legal cryptocurrency mining is causing Russia to lose millions of dollars in electricity and taxes each year.

Reports indicate that to avoid high taxes and electricity costs, many miners have turned to underground operations, resulting in annual budget losses of billions of rubles. Although Moscow requires all industrial miners to report operational data to the Federal Tax Service and obtain legal entrepreneur status, small-scale miners remain reluctant to cooperate. Experts estimate that there are about 140,000 Bitcoin and altcoin mining farms in Russia, and the number continues to grow, but most are unreported. Since commercial electricity prices account for 80% of mining profits, miners often resort to fraud or private deals with energy companies to reduce costs, forcing ordinary consumers to foot the bill for mining operations.