Russian Bitcoin Miners Fear Exposure to Sanctions Over Government Registry

Russian Bitcoin miners are expressing concerns over a new government registry that collects sensitive data, including crypto wallet addresses. The registry, which has been operational since November 2024, has sparked fears of potential data leaks and subsequent exposure to sanctions.

A Registry with Sensitive Information

The Russian government’s registry, available through the Federal Tax Service, has already seen around 150 miners submit registration requests in its first three weeks of operation. However, Russian lawmaker Anton Gorelkin, who oversees information policy, has warned that the registry’s data could be a “big gift to our geopolitical opponents” if leaked.

Gorelkin’s concerns are not unfounded, given Russia’s history of data breaches. In 2024, Roskomnadzor, the country’s communications watchdog, recorded 135 data leaks, resulting in over 710 million records of Russians being leaked online. The spike in leaks was attributed to low fines for companies, but the Russian State Duma has since passed a bill raising fines for data breaches to a maximum of 15 million rubles (around $150,000).

Sanctions and the Crypto Mining Sector

While Russia’s crypto mining sector is not directly under international sanctions, some companies have still been 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. More recently, in March 2024, OFAC targeted 13 Russian entities, including fintech firms, for helping to evade sanctions through crypto services.

Tips for Crypto Miners:

  • Verify the authenticity of any government registry or data collection initiative.
  • Understand the risks associated with data leaks and potential exposure to sanctions.
  • Implement robust cybersecurity measures to protect sensitive information.

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