Russian Bitcoin miners are expressing concerns over a new government registry that collects sensitive information, including crypto wallet addresses, under recently implemented regulations. Lawmakers, including Anton Gorelkin, who oversees information policy in Russia, have warned that the exposure of this data could serve as a “big gift to our geopolitical opponents” if it were to be leaked.
Launched in November 2024, the national registry is managed by Russia’s Federal Tax Service. Daniil Yegorov, the head of the tax agency, previously reported that around 150 miners had registered in the first three weeks of the registry’s operation. However, the ongoing process has raised alarms among miners, who worry that if the data were to leak, it could expose them to sanctions.
In a recent Telegram post on Feb. 7, Gorelkin shared his concerns, saying that miners are increasingly anxious about the potential risks associated with the registry. While the tax agency assured him that the data is stored in a “separate internal protected system” with restricted access, the fear remains. Gorelkin added that not even everyone within the agency can access this sensitive data and emphasized that external access is “practically impossible.” Despite this, he acknowledged that cybersecurity experts often point out that “everything that can leak, will eventually leak,” casting doubt on the assurances given.
In 2024, Roskomnadzor, Russia’s communications watchdog, recorded 135 data leaks, affecting over 710 million Russian records. The government has since raised the fines for data breaches significantly, from a maximum of 100,000 rubles (around $1,000) to 15 million rubles (around $150,000), indicating a heightened focus on securing sensitive information.
While Russia’s crypto mining industry isn’t directly targeted by international sanctions, some companies in the sector have been affected. In April 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned BitRiver AG, a Swiss-based company with operations in Russia, marking the first time a crypto mining company was targeted. In March 2024, OFAC extended sanctions to 13 Russian entities, including fintech firms, for allegedly helping to evade sanctions using cryptocurrency services.