Regulatory effect on the shadow economy of mining: a regional aspect

the study examines the structural connections between cryptocurrency mining and the shadow economy in the context of regulatory reforms in Russia. The relevance of the topic is driven by the exponential growth of Bitcoin’s value, tightening sanctions pressure from the EU/US, and the unique energy resources of the Russian Federation, including an abundance of cheap electricity. The focus of the research is the relationship between the legal and shadow sectors of mining in regional contexts. The aim is to assess the impact of 2024 regulatory measures (including operator licensing) on the industry’s legalization. The hypothesis posits that state regulation reduces but does not eliminate shadow activity, while regional disparities in energy resources and gaps in legislation exacerbate risks. By 2025, Russia has 136.5 thousand mining farms (73% in the shadow sector), with annual damages from illegal activities reaching 10 billion rubles. Regulatory measures (Federal Law No. 221, tax reforms) have partially legalized the market, but 85% of taxes from companies flow to Moscow’s budget, creating imbalance and disregarding regional localization. Disparities are evident: Siberian regions dominate legal mining due to preferential tariffs, while the North Caucasus and newly incorporated regions face bans but maintain shadow activity. The findings can be applied to improve tax policy, redistribute budget revenues, optimize energy consumption using smart-grid systems, and combat money laundering. Limitations stem from a lack of data on private farms due to owner anonymity and the short observation period. Further research should analyze the long-term effects of regulatory reforms, environmental consequences of carbon footprints, and the role of international sanctions in transforming cryptocurrency markets.

cryptocurrency mining, shadow economy, regulatory reforms, industry legalization, illegal mining, regional disparities, energy infrastructure, tax regulation, environmental risks, investment attractiveness, government control, crypto