Russia has launched a national system to regulate the use of mining equipment in cryptocurrency, focusing on minimizing illegal operations in this sector.
What Does the Equipment Registry System Offer?
The registry system, proposed by the Ministry of Energy, aims to eliminate illegal mining operations that burden the electrical grid. The database contains detailed information on each piece of equipment, including model numbers and wattage. This allows electricity distribution companies to monitor usage in real time. Tax authorities will compare these insights with miners' income declarations, ensuring proper taxation and preventing tariff exploitation.
Why Are Regional Bans Being Imposed?
Ahead of this system's launch, Russian authorities imposed a six-year ban on crypto mining in power-deficient areas to prevent potential outages. This ban affects six regions and remains in effect until March 15, 2031. This is part of a broader initiative that also includes a new portal for miners to declare their earnings online, aligning with President Vladimir Putin's tax policy set to commence in 2025.
New Measures Against Illegal Cryptocurrency Mining
The Ministry of Digital Development has also introduced new legislation empowering courts to seize mining equipment and unregistered cryptocurrencies. Companies found repeating offenses may face fines up to 2 million rubles (approximately $22,000). Through these measures, Russia seeks to assert greater state control over significant hash power networks, such as Bitcoin.
With the introduction of the registry system, Russia is taking significant steps to regulate the cryptocurrency mining sector, ensuring the protection of energy resources and compliance with national laws.
