Russia mined over $3 billion worth of Bitcoin last year, generating approximately 50 billion rubles ($556 million) in tax revenue, according to Sergey Bezdelov, Director of Russia’s Industrial Mining Association.

This mining activity followed the legalization of crypto mining in July 2023, which is expected to attract more investors and boost tax income.

The legalization is part of Russia’s strategy to expand its crypto industry amid Western sanctions. The Russian government has been leveraging the industry to mitigate sanctions impacts. Blockchain analytics firm Chainalysis has raised concerns that Russia might use crypto exchanges like Garantex, which has processed nearly $100 billion in transactions, and Exved, to evade sanctions. Garantex and Exved are considered key players in Russia’s crypto market despite their sanctioned status.