According to a local newspaper, the Russian Ministry of Energy, the Ministry of Digital Development, and the Federal Tax Service have compiled a “registry” that has been sent to regions with increased mining activity.
An official of the Finance Ministry, Ivan Chebeskov, stated that despite certain laws being adopted, only 30% of miners had signed the official register of the Federal Tax Service since the end of 2024.
A Step Forward In Regulation
Local newspaper RIA Novosti reported that the country is actively working on developing more stringent legislation to reduce the improper use of the country’s energy grid.
The previously introduced framework requires individuals and businesses interested in mining to register with the Federal Tax Service. Citizens can mine up to 6,000 kWh per month without entrepreneur status, but must register as such if they exceed the limit.
In an interview with the paper, Petr Konyushenko, the Deputy Energy Minister, noted that this is a step in the right direction for taxation and legalization (translated in English by Google):
“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.”
Two laws were signed by Putin in late 2024, one of which outlines key terms, such as mining and pools, and imposes requirements for registration and reporting for businesses. It also prohibits foreign nationals from mining in Russia while granting the government the right to restrict mining in specific areas.
The second law outlines the rules governing the circulation of digital currency and establishes regulations for mining activities. Despite these legislations being signed into law, no clear regulations have been introduced, according to the chief analyst of local exchange BestChange, Nikita Zuborev:
“The full legalization of mining has not happened. Instead, it can be said that some norms have been established by law that simplifies control over industrial mining,”
Current Regulatory Landscape In Russia
Due to the conflict with Ukraine that began in early 2022, the country has been facing serious sanctions from the European Union. As a consequence, some well-known exchanges, such as Deribit, had to cease providing their services to nationals unless certain specific requirements were met.
Some of these requirements include Russian citizens with dual citizenship to other EEA countries, Switzerland, or individuals who permanently reside in either of these regions. Native companies were completely exempt from using the exchange.
A ban was also enforced for the winter months, restricting mining in several regions to avoid blackouts. These restrictions vary between areas controlled by Russia and Ukraine and have different timeframes, from as early as March this year to as late as March 3031. Some will remain on an annual basis as well.
The Russian power company PAO Rosseti has begun exploring the hosting of mining infrastructure by utilizing the country’s idle power. Although cryptocurrency mining is deemed legal, trading of them remains illegal as of this moment.
CryptoPotato has previously reported that, despite these hurdles, the decentralized finance (DeFi) sector is seeing notable adoption from institutions.
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