Approximately 54,000 Bitcoin (BTC), worth around $3 billion, was mined in Russia last year, said Sergey Bezdelov, the Director of the Industrial Mining Association, at the Eastern Economic Forum 2024, first reported by media outlet Izvestia.

According to Bezdelov, this could generate around 50 billion rubles in taxes for the Russian government. He expects the recent legalization of crypto mining in Russia to attract more investors and increase tax revenue.

On August 8, Russian President Vladimir Putin signed a law legalizing crypto mining in the country. That means crypto mining is now a legitimate economic activity and legal entities can be part of it, with proper registration or within specific energy consumption limits.

The new legal framework is also anticipated to stimulate infrastructure investments and contribute to overall economic growth.

Legalizing mining may only be the first step toward expanding crypto operations in Russia, which has long been dealing with economic sanctions. A number of recent events indicate that the nation’s authorities are turning to alternative payment systems, like crypto payments, to circumvent sanctions.

Last month, a local media outlet reported that Russia planned to set up at least two crypto exchanges in Moscow and St. Petersburg. These exchanges will serve as hubs for international trade and are part of a broader strategy to enhance economic cooperation with BRICS nations.

Bloomberg said that the country began trials for crypto exchanges earlier this month. This is part of a strategy to mitigate the impact of international sanctions.