Russian Bitcoin Miners Fear Government Registry as Western Sanctions Loom

Russian lawmaker Anton Gorelkin highlighted these concerns in a Feb. 7 Telegram post, warning that geopolitical rivals could exploit leaked addresses.

Russian Bitcoin (BTC) miners are voicing concerns over a government mandate that requires them to submit their cryptocurrency wallet addresses to a national registry.

Lawmaker Anton Gorelkin highlighted these concerns in a Feb. 7 Telegram post, warning that geopolitical rivals could exploit leaked addresses. He described such a scenario as a “major threat,” considering the sanctions that could follow and impact mining operations.

According to Gorelkin:

“Russian miners are concerned about the safety of some highly sensitive data that is collected by the state as part of the new regulation (for example, crypto wallet numbers).”

He added that a leak of this information would be a “big gift to our geopolitical opponents.”

Despite these concerns, Russia's tax authority reportedly told Gorelkin that the registry is housed in a secure internal system with strict access controls. Officials claim the risk of leaks is minimal. However, skepticism remains as cybersecurity experts often stress that no system is entirely immune to breaches.

Gorelkin further stated:

“The Federal Tax Service assured me that information about mined cryptocurrency and identifier addresses is stored in a separate internal secure system, and access to it is seriously limited even within the agency, and it is almost impossible to obtain it from the outside.”

These concerns arise as Bitcoin mining has become a profitable business in Russia. Demand for industrial mining equipment in the country surged threefold in 2024.

However, authorities have also ramped up efforts to collect information on these miners. They are currently pushing to introduce a nationwide registry for crypto-mining equipment. This move would make registration compulsory for all mining activities, adding another layer of government scrutiny.

Related: Russian sanctions fuel Bitcoin demand, but miners face new regulatory hurdles

Western nations, including the U.S., have imposed heavy restrictions on Russia's economy, cutting off access to traditional financial networks. These measures have hit key industries such as energy, trade, and technology.

Last month, the U.S. Treasury Department introduced a new wave of sanctions aimed at reducing Russia's energy revenues. The sanctions will block two active liquefied natural gas projects, a large Russian oil project, and third-country entities supporting Russia’s energy exports.