The Russian government has established a registry of cryptocurrency mining equipment to help control illegal mining activity.
This list helps local authorities accurately identify electricity consumers for cryptocurrency mining, reduce illegal electricity use, and promote the legalization of the cryptocurrency mining industry in Russia.
MAIN CONTENT
Establish a cryptocurrency mining equipment registry to track and handle illegal mining activity.
Russian law allows both organizations and individuals to legally exploit electricity when registered and in compliance with electricity regulations.
Authorities are cracking down on illegal mining farms to balance electricity resources and promote sustainable development.
How does the cryptocurrency mining equipment registry help control?
The list allows to accurately identify electricity consumers for cryptocurrency mining purposes and to apply appropriate regulatory and tax policies, Russian Deputy Energy Minister Petr Konyushenko said. The initiative was developed by the Energy Ministry in collaboration with the Federal Tax Service and the Ministry of Digital Development, with the aim of making the cryptocurrency mining market more transparent.
“Creating an equipment registry is an important step towards legalizing the mining industry and curbing illegal electricity use.”
Petr Konyushenko, Deputy Minister of Energy of Russia, 2024, RIA Novosti
This also helps prevent losses for electricity distribution companies and limit energy shortages in some areas when illegal mining farms operate vigorously.
What does Russian law say about cryptocurrency mining?
From the summer of 2024, Russia officially legalized cryptocurrency mining with mandatory registration and declaration to tax authorities for all individuals and businesses mining and producing cryptocurrency to ensure fair tax collection.
Individuals are allowed to mine without registration if their total electricity consumption does not exceed 6,000 kWh per month. However, regardless of the group, miners must report the volume and value of cryptocurrency mined to the Federal Tax Service.
Why is the Moscow government cracking down on illegal mining farms?
Russia is currently a major player in the global Bitcoin mining market, but less than a third of cryptocurrency mining businesses are legally registered. Therefore, establishing a mining equipment registry is an important tool to increase the proportion of legal mining.
“We need to ensure the sustainable development of the mining industry, avoid wasting electricity and limit illegal farm construction activities that are harmful to society.”
CEO Rosseti, Russian state grid company, 2024
To detect illegal cryptocurrency mining farms, Rosseti works with telecom operators to monitor suspicious internet traffic. This method helps to promptly detect illegal electricity usage in areas with energy shortages.
What made Russia ban cryptocurrency mining in some regions?
The Russian government has introduced seasonal restrictions and a permanent ban on cryptocurrency mining in several regions to balance electricity resources and cope with energy shortages. Some areas have been banned for up to six years.
The policy was highlighted by President Vladimir Putin at the 2024 Initiative Development Forum, saying that limiting exploitation was necessary to protect national resources from the risk of depletion.
“We are forced to make certain decisions in the mining sector to maintain the electricity balance.”
Vladimir Putin, President of Russia, 2024
Law enforcement has also dismantled several large-scale illegal mining farms, such as a facility in Krasnoyarsk Krai – one of Siberia’s leading cryptocurrency mining hubs – which was found to be operating on nearly 30,000 square meters of land but was not registered as required by law.
Comparison table of cryptocurrency mining control measures in Russia
Measures Purpose Solution Mining equipment registration list Identify legal mining electricity consumers Collect data, impose appropriate taxes Limit electricity consumption Control individual small-scale miners 6,000 kWh/month threshold without mandatory registration Monitor internet traffic Detect illegal mining farms Cooperate with network operators, detect abnormal activities Restrict mining areas Balance power supply, prevent shortages Permanent or seasonal ban in many areas
Frequently Asked Questions
What is the Russian Cryptocurrency Mining Equipment Registry? This is a system that records all cryptocurrency mining equipment to help authorities manage and control electricity consumption to limit illegal mining. What does Russia's cryptocurrency mining law say about individuals? Individuals are allowed to mine cryptocurrency without registration if their electricity consumption is less than 6,000 kWh/month, but they still have to declare the amount of cryptocurrency mined to the tax authorities. How does Russia deal with illegal mining farms? The authorities are constantly reviewing, coordinating to solve crimes, and applying measures to restrict operations, including banning mining in areas with severe electricity shortages. How are illegal mining farms detected? The country uses internet traffic monitoring technology in collaboration with network operators to detect illegal cryptocurrency mining. Are there any measures to help the mining industry in Russia develop legally? Equipment registration lists, strict regulations and registration incentives help to make cryptocurrency mining transparent nationwide.
Source: https://tintucbitcoin.com/nga-ra-mat-dang-ky-tho-dao-tien-dien-tu/
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