Why Russian Crypto Miners Are Running to Dogecoin as Industry Trends Shift

Russian crypto miners are switching to ‘Dogecoin (DOGE) and other altcoins, with a decreasing focus on Bitcoin (BTC), according to Anton Gorelkin, a Russian lawmaker. Recent reports show that 8.4% of Russian miners are now mining DOGE, which is part of a broader trend of diversification in the industry.

But why and how does this fit with Russia’s changing crypto landscape, mining regulations and tax policies?

Russian Miners Going for Dogecoin

Anton Gorelkin, Deputy Head of the State Duma’s Committee on Information Policy, recently said that Dogecoin is gaining popularity among Russian miners. At a meeting of the ROCIT (Russian Public Organization for Internet Users’ Rights), the mining industry is shifting towards alternative cryptocurrencies.

The latest statistics from ROCIT show:

This is different from what Russian tech company MTS claimed, that Bitcoin mining accounts for 90% of Russia’s total industrial mining capacity. However, ROCIT’s data shows that more and more miners are going into altcoins.

Why are Russian crypto Miners Choosing Dogecoin?

Several reasons might be behind Russian crypto miners switching to Dogecoin and Litecoin over Bitcoin:

RBC reported:

“Dual mining is possible with these coins [DOGE and LTC]. Both can be mined on the same device with special software.”

Contradictory Reports: How big is Dogecoin mining in Russia?

Despite these trends, some experts doubt ROCIT’s report.

Russian tech giant MTS previously said that Bitcoin still accounts for 90% of the Russian crypto mining industry, and only a small part is dedicated to Litecoin, Ethereum (ETH), and Kaspa (KAS).

MTS said:

“Most of Russia industrial mining facilities are still focused on Bitcoin, only a small part are mining altcoins like Litecoin, Kaspa (KAS) and Ethereum (ETH).”

So the question is: Is Dogecoin really gaining traction in Russia or it’s just small-scale miners? Industry insiders say small-scale miners are moving to DOGE, while larger industrial miners are still all in on Bitcoin.

Russia’s Mining Regulations & Taxation

Gorelkin also updated on Russia’s mining regulations, saying:

– National miners registry has been launched under Federal Tax Service (FTS)

– 563 individual miners and 98 mining infrastructure companies have signed up already

– Russia will generate 50-60 billion rubles ($586.9M-$704.3M) per year from crypto mining

But Gorelkin warned penalties may be introduced for miners who don’t register or comply with tax requirements.

He said:

“In April, Russian miners will have to submit their first tax declaration to the FTS. Budget revenues from mining activities were previously estimated at 50-60 billion rubles ($586.9M-$704.3M) per year. Let’s see how accurate were these forecasts.”

Crackdown on Illegal Mining

Despite Moscow’s regulatory push, illegal mining is still growing, especially in Siberia.

In February 2025, Irkutskenergosbyt, a Siberian ‘power company, reported that residential electricity consumption had increased by 1% compared to January 2024.

Officials believe many unregistered miners are using subsidized household electricity for mining.

To combat this, Russia is looking into stricter enforcement, including crackdowns on illegal mining in energy-rich regions.

What Does This Mean for Dogecoin?

Conclusion

The reported increase in Dogecoin mining among Russian crypto miners is a potential shift in priorities, but conflicting views from industry insiders leave room for doubt.

As Russia regulates crypto more tightly and pushes for tax compliance, miners will look for ways to stay competitive and avoid legal troubles.

Is this Dogecoin mining trend a temporary thing or a long term switch? Only time will tell. But Russia’s crypto landscape will continue to shape mining in the region.

FAQs

1. Why are Russian crypto miners switching to Dogecoin?

Russian crypto miners are mining Dogecoin because of its dual mining with Litecoin, lower energy consumption and speculative trading.

2. What percentage of Russian miners are mining Dogecoin?

According to ROCIT, 8.4% of Russian miners are mining Dogecoin, 11.1% are mining Litecoin and 49.4% are still mining Bitcoin.

3. How does Dogecoin mining work in Russia?

Dogecoin mining in Russia is done through Scrypt-based mining rigs which allows mining of DOGE and LTC at the same time. Some industrial miners prefer this way because of lower costs compared to Bitcoin mining.

4. What are Russia’s latest crypto mining regulations?

Russian government has introduced a national registry for miners, tax declarations and compliance with new laws. Authorities are also cracking down on illegal mining.

5. Can Dogecoin’s price be affected by Russian miners?

If Russian miners massively mine Dogecoin, it can affect DOGE’s price, liquidity and volatility.

Glossary

References

1. RBC Russia Crypto Mining Report
2. CryptoNews