Russia’s Ministry of Energy to Implement Nationwide Registry for Crypto Mining Equipment
Russia’s Ministry of Energy is taking steps to introduce a nationwide registry for crypto mining equipment, with plans to make registration mandatory for all operations. This initiative is aimed at refining existing mining regulations and improving oversight in the industry. The move comes in response to ongoing concerns about illegal mining activities, particularly in restricted regions.
Clearer Criteria for Defining Crypto Mining
The authorities in Russia are looking to establish clearer criteria for defining crypto mining activities and address regulatory gaps that allow unregistered operations to thrive. The government’s goal is to adapt the law ‘On Mining’ to the current situation and formulate clearer criteria for classifying activities related to the production of digital currency.
Challenges with Enforcement
Despite previous bans on illicit mining, unauthorized activities are still rampant in the country. Nikolai Shulginov, Chairman of the State Duma Committee on Energy, has acknowledged that restrictions imposed in several Russian regions have not been successful in curbing illegal mining operations.
Easier Tax Compliance for Miners
In a related development, Russia’s Federal Taxation Service (FNS) has introduced an online system that allows crypto miners to declare their earnings. This new function in the personal accounts of taxpayers enables users to report their digital currency earnings to the tax authority.
Specific Tax Reporting Forms
Individuals, businesses, and entrepreneurs with a qualified electronic signature can access the online service provided by the FNS. The system offers specific tax reporting forms tailored for different types of taxpayers, aligning with efforts to integrate crypto into the economy.
Updated Regulatory Framework
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 now face a 15% tax rate.
Government’s Strategy for Crypto Integration
The regulatory measures introduced by the Russian government are part of a broader strategy to integrate crypto into the economy. The increased regulatory clarity has led to a rise in businesses and individuals investing in Bitcoin mining and using Bitcoin and stablecoins for transactions.
Surge in Demand for Mining Equipment
In 2024, the demand for industrial mining equipment in Russia tripled compared to the previous year, indicating a growing interest in crypto mining activities in the country.