Russian Bitcoin miners are expressing concerns over a new government mandate that requires wallet addresses to be included in a national registry. Russian lawmaker Anton Gorelkin recently highlighted these concerns, warning that leaked addresses could be exploited by geopolitical rivals, posing a significant threat to mining operations. The potential impact of sanctions on mining operations is a major worry for Russian miners.
In response to these concerns, Russia’s tax authority has assured Gorelkin that the registry is stored in a secure internal system with strict access controls. Officials claim that the risk of leaks is minimal. However, cybersecurity experts often emphasize that no system is entirely immune to breaches, which has left some skepticism among miners.
These concerns arise at a time when Bitcoin mining has become a lucrative business in Russia, with a threefold increase in demand for industrial mining equipment in 2024. However, authorities are also intensifying their efforts to collect information on miners and are pushing for the introduction of a nationwide registry for crypto-mining equipment. This move would make registration mandatory for all mining activities, subjecting miners to further government scrutiny.
The fear of sanctions among Russian miners is well-founded, as Western nations, including the US, have imposed significant restrictions on Russia’s economy. These measures have cut off access to traditional financial networks and have had a detrimental impact on key industries such as energy, trade, and technology.
Last month, the US Treasury Department implemented a new wave of sanctions aimed at reducing Russia’s energy revenues. These sanctions will block two active liquefied natural gas projects, a large Russian oil project, and third-country entities supporting Russia’s energy exports.
Overall, Russian Bitcoin miners are grappling with concerns about the new government mandate requiring wallet addresses to be included in a national registry. The potential for leaks and the impact of sanctions on mining operations are significant worries. While officials claim that the registry is secure, skepticism remains among miners. These concerns come at a time when Bitcoin mining is thriving in Russia, but authorities are also increasing their efforts to collect information on miners and introduce a nationwide registry for crypto-mining equipment. The fear of sanctions is well-founded, as Western nations have imposed restrictions that have severely affected Russia’s economy.
