Russia’s Ministry of Energy is taking steps to address the issue of illegal crypto mining by introducing a nationwide registry for mining equipment. This move, led by Deputy Minister of Energy Yevgeny Grabchak, aims to refine existing regulations and improve oversight in the industry. The government plans to establish clearer criteria for defining crypto mining and close regulatory gaps that allow unregistered operations to thrive.
Despite previous bans, illicit mining remains a significant problem in Russia, particularly in restricted regions. Nikolai Shulginov, Chairman of the State Duma Committee on Energy, acknowledged that the restrictions imposed in several Russian regions have not been effective in curbing unauthorized mining.
In addition to the registry, Russia’s Federal Taxation Service (FNS) has introduced an online system that allows crypto miners to declare their earnings. This system, accessible to anyone with a qualified electronic signature, enables users to report their digital currency income to the tax authority. The introduction of this system aligns with broader efforts to integrate crypto into the economy and facilitate tax compliance for miners.
Under Russia’s updated regulatory framework, digital assets are considered taxable property. While crypto transactions are exempt from value-added tax, mining and trading profits are now subject to a 15% tax rate. These regulatory measures reflect the government’s strategy to integrate crypto into the economy and have encouraged businesses and individuals to invest in Bitcoin mining and use cryptocurrencies for their transactions.
The demand for industrial mining equipment in Russia has seen a significant increase, tripling in 2024 compared to the previous year. This surge in demand is a result of greater regulatory clarity and the growing interest in crypto mining in the country.
Overall, the introduction of a nationwide registry for crypto mining equipment and the online tax reporting system demonstrate Russia’s commitment to regulating the industry and integrating cryptocurrencies into its economy. These measures aim to address the issue of illegal mining and ensure tax compliance while fostering the growth of the crypto sector in the country.
