Key Points
- Russian Bitcoin miners are concerned about potential exposure to sanctions due to a new government registry collecting sensitive data.
- The registry, in operation since November 2024, has already seen about 150 miners register in the first three weeks.
Russian Bitcoin miners are expressing concern regarding a new government registry that collects sensitive data, including crypto wallet addresses. Anton Gorelkin, a lawmaker who oversees information policy in Russia, warned that if this data were to leak, it could be a significant advantage for Russia’s geopolitical adversaries.
Registry Details and Miner Concerns
The registry for crypto miners in Russia was launched in November 2024 and is accessible via the Federal Tax Service. The head of the tax agency, Daniil Yegorov, revealed that approximately 150 miners had submitted registration requests within the first three weeks of the registry’s operation.
Gorelkin, in a Telegram post on February 7, shared that Russian crypto miners are expressing worry about the registry. Their fear is that a data leak could reveal sensitive information and lead to sanctions. The tax agency reassured Gorelkin that the data is stored in a separate internal protected system, with limited access even within the agency itself, and external access is virtually impossible.
Previous Data Leaks and Sanctions
In 2024, Roskomnadzor, the Russian communications watchdog, recorded 135 data leaks, with over 710 million records of Russians leaking online. This surge in leaks occurred as companies faced low fines. However, by the end of 2024, the Russian State Duma passed a bill increasing fines for data breaches from 100,000 rubles (around $1,000) to 15 million rubles (around $150,000).
The crypto mining sector in Russia isn’t directly under international sanctions, but some companies have been indirectly affected. In April 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control sanctioned BitRiver AG, a Swiss-based holding company with operations in Russia. This was the first instance of a crypto mining company being targeted. Fast forward to March 2024, and 13 Russian entities, including fintech firms like B-Crypto, Masterchain, Laitkhaus, and Atomaiz, were sanctioned for assisting in sanctions evasion through crypto services.