Russia is intensifying its efforts to combat illegal cryptocurrency mining by creating a national registry of mining equipment. This move aims to legalize the sector and control energy consumption.
Creation of the Mining Equipment Registry
Russian authorities are implementing a national registry of cryptocurrency mining equipment, which will help identify unregistered operations. The registry has already been compiled and distributed to regions with high mining activity. This initiative is a collaborative effort by the Ministry of Energy, the Federal Tax Service, and the Ministry of Digital Development as part of a state strategy to legalize the sector.
Legal Framework and Taxation
In 2023, Russia adopted a law allowing cryptocurrency mining for citizens, registered individual entrepreneurs, and legal entities. Individual users can mine without registration if they stay within government-set energy limits. However, businesses and sole proprietors must register with the Federal Tax Service and pay a 15% tax on mining profits.
Measures Against Illegal Mining
In recent years, Russia has been taking measures to control illegal operations in the field of cryptocurrency mining, including shutting down unauthorized mining sites. In one of the largest cases, an open-air mining site in Krasnoyarsk Krai operating on state-owned land was shut down. Authorities are also noting instances of utility workers engaging in corruption and hackers creating covert mining networks.
The establishment of a national mining equipment registry represents an important step in the legalization of the cryptocurrency sector in Russia. Despite these measures, a significant number of miners continue to operate outside official oversight.
