Russia has created a comprehensive register of cryptocurrency mining equipment, which aims to identify electricity consumers involved in mining, facilitating special regulations and taxation.
Russia Compiles Crypto Mining Equipment Register to Boost Oversight
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Combating Unregistered Mining Operations
The Russian Ministry of Energy, Federal Tax Service (FTS), and Ministry of Digital Development have reportedly compiled a comprehensive register of cryptocurrency mining equipment. Deputy Energy Minister Petr Konyushenko confirmed that this register has already been dispatched to regions experiencing heightened miner activity.
In remarks made during an interview with RIA Novosti, Konyushenko emphasized the critical role of this new register.
“The creation of such a register will allow for the precise identification of consumers using electricity for mining needs. This is necessary for applying special regulation and taxation to them. This is a step towards legalizing the industry and reducing illegal consumption,” the Deputy Minister said.
According to the RIA Novosti report, the initiative aims to address concerns about unregistered mining operations, which often contribute to energy overloads and evade taxation. The idea for a unified register of mining equipment gained traction in February during a working meeting on digital currency mining regulation and received support from the Ministry of Industry and Trade in May.
The establishment of this register comes on the heels of a cryptocurrency mining law adopted in Russia last year. This law provides a legal framework for mining activities, permitting both Russian legal entities and individual entrepreneurs, as well as citizens, to engage in mining. However, it mandates that legal entities and individual entrepreneurs must be registered with the Federal Tax Service.
For individual citizens not registered as entrepreneurs, the law allows for digital currency mining without FTS registration, provided they adhere to government-set energy consumption limits. Crucially, all miners, regardless of their registration status, are legally obligated to furnish the Federal Tax Service with data pertaining to the digital currency they have acquired.
This new equipment register is expected to significantly enhance the authorities’ ability to monitor and regulate mining operations, ensuring compliance with energy consumption limits and tax obligations, ultimately aiming to foster a more transparent and legally compliant cryptocurrency mining landscape in Russia.
