Russia has now launched a register of cryptocurrency mining machines as part of a drive toward greater transparency around its energy consumption.
The register will be used by state agencies while tracking electricity used by cryptocurrency miners, and will apply some regulations as a consequence. It was facilitated by a collective effort of the Ministry of Energy, the Ministry of Digital Development, and the Federal Tax Service (FTS).
Deputy Energy Minister Petr Konyushenko has maintained that, indeed, the system has been implemented in areas where crypto mining continues to remain active.
This information will be used by the state in undertaking taxation and electricity policy use. Miners will hence have to abide by tough registration mechanisms if they are going to work lawfully inside the Russian Federation.
The mining firms and private businessmen ought to be listed in the FTS register on their behalf. They should also report any income earned from crypto activities. This includes mined coins and profits from selling crypto.
This registry statement comes after the approval of a new mining law in Russia. The law sets clear rules for how cryptocurrency operations should be carried out.
Russia sets legal rules for Crypto mining activities
However, it enables its people, businessmen, and firms to conduct mining, as long as on special conditions provided by law. It obliges legal entities to undergo a formal registration in front of a tax authority before the start of mining activity.
Russians are allowed to mine cryptocurrency legally. However, they must follow electricity usage limits set by federal authorities. Once a bill becomes law, you must register and follow tax payment rules. This applies even if you think you are exempt.
All miners, big or small, must report their earnings. They have to send detailed information to the Federal Tax Service. This is a legal requirement. This requirement is common to all miners.
Deputy Minister Yevgeny Grabchak has already confirmed that the Ministry of Industry and Trade is in favor of the registry project. It was suggested publicly this year in the session concerning the regulation of cryptocurrencies.
Involving three main government departments in the registry will help reduce illegal energy use. It will also make tracking energy usage easier.
Russian officials see this step as critical for the industry’s legitimacy. They also believe it serves to curb illegal parallel crypto operations. They are looking to promote reasonable use of power via increased regulation. This will result in improved realignment of operations in the legal sphere.
