Russian banks eye Bitcoin-backed loans for crypto miners

Financial institutions in Russia are exploring innovative lending models, with one prominent bank proposing loans collateralized by Bitcoin. This initiative stems from a discernible demand within the cryptocurrency mining sector for financing infrastructure development and operational expansion. By allowing miners to leverage their digital asset holdings, such as Bitcoin, as security, the proposed lending framework aims to inject capital into an industry that has seen significant growth but faces regulatory and financial hurdles.

Addressing a Gap in Mining Sector Financing

Russian banks are observing a clear need for loan products backed by digital financial assets, particularly from the burgeoning crypto mining industry. Sovcombank, recognized as one of Russia’s systemically important financial institutions, has highlighted this demand. Maria Burdonova, director of compliance at Sovcombank, noted at the Finopolis 2025 fintech forum that there is a specific requirement for “small loans secured by digital financial assets” to support infrastructure projects. This is especially relevant given the prevalence of numerous smaller mining operations across Russia that often struggle to secure traditional financing.

The legalization of cryptocurrency mining in Russia in 2024 mandated registration with the Federal Tax Service (FNS) for involved companies and entrepreneurs. However, miners consuming less than 6,000 kWh of electricity monthly are exempt, often operating outside official oversight and potentially evading taxes. Government estimates suggest that less than a third of the country’s mining operations are currently registered, leading to substantial uncollected tax revenue. Facilitating access to capital for these entities could encourage greater formalization and transparency within the sector. Burdonova emphasized the bank’s efforts to develop tailored products for miners, stating, “A miner can take out a loan secured by a financial asset, such as Bitcoin, put the money into circulation, and wait for favorable market conditions to sell the mined Bitcoin.” This approach allows miners to capitalize on their digital assets while awaiting optimal market conditions for liquidation.

The Evolving Regulatory Landscape for Crypto in Russia

While crypto mining is now legal, most other transactions involving digital currencies remain outside the established legal framework in Russia, reflecting a cautious regulatory stance. Current legislation, such as the Digital Financial Assets (DFA) law from 2021, does not explicitly encompass decentralized cryptocurrencies like Bitcoin, as per reports from the business news portal RBC. However, there are indications that this landscape is set to change. The Central Bank of Russia anticipates the adoption of new crypto legislation in 2026 and has signaled intentions to permit banks to engage in cryptocurrency operations. Until then, official crypto transactions are primarily confined to an “experimental legal regime,” designed to facilitate cross-border payments for Russian companies facing sanctions and to provide access to crypto investments for “highly qualified” investors.

Russia’s strategic advantages, including abundant energy resources and favorable climatic conditions, have positioned it as a significant global hub for cryptocurrency mining. The practice of using mined cryptocurrency as collateral for loans is already a common and established method in leading mining jurisdictions such as the United States. Similarly, lending secured by mining equipment is also a prevalent practice in that market. The proposed Russian initiative to allow Bitcoin-backed loans could foster greater integration of the mining sector into the broader financial system and stimulate further growth.