The Russian government has launched a national registry to track and tax crypto miners, targeting unregistered operations.
Objectives of the National Registry for Miners
The Ministry of Energy and the Federal Tax Service of Russia initiated the creation of a national registry aimed at regulating cryptocurrency mining and taking action against illegal operations. This measure seeks to formalize the crypto mining sector, reduce illegal operations, and boost tax efficiency. Deputy Minister of Energy Petr Konyushenko stated that the creation of such a register will allow accurate identification of consumers using electricity for mining needs.
New Tax System
The registry will impact Bitcoin (BTC) and Ethereum (ETH) miners by shifting 'grey-market' operations to official setups. The new two-tier tax system imposes taxation of up to 15% on higher earnings, aiming to enhance tax compliance. These changes may influence miners' decisions to continue operating within the country's regulatory framework.
Global Regulatory Trends
Similar efforts to tighten regulations have been observed in China and Kazakhstan, with the Russian registry reflecting global trends towards stricter cryptocurrency mining regulations. This initiative might lead to a shift of hashing power towards registered setups. Historically, enforced regulations often temporarily disrupt mining operations before stabilization.
The establishment of a national registry for crypto miners in Russia highlights the government's efforts to formalize and regulate the sector, which may change the landscape of taxation and operations in the country.
