Russia to Enforce Crypto Mining Registration Rules

Russia Aims to Regulate Crypto Mining with New Laws

Russia is making big changes to regulate its growing crypto mining industry. The country's lower house of parliament has passed new laws aimed at clarifying how government agencies will oversee crypto mining. These laws include giving the government the power to ban crypto mining across the entire country or in certain regions if necessary. The new rules mainly target large-scale miners and mining pools, requiring them to register with the Federal Tax Service (FTS). This step is aimed at keeping track of large mining operations and ensuring they follow regulations. Smaller, private miners are exempt from this registration, but they will face strict limits on how much energy they can use.

Russian Ministry of Finance and Crypto Mining

The Ministry of Finance sees mining as a way to boost the economy by attracting investments and creating jobs. However, the government wants to make sure the industry doesn’t grow out of control, and they want to keep a close watch on it. The amendments will now be voted on by the Federation Council, and if approved, the new rules will take effect on November 1. This could be a major turning point for crypto mining in Russia.

New Taxes for Crypto Miners

In addition to the new regulations, Russia is also exploring tax options for different types of crypto mining operations. One of the main ideas being discussed is to impose an income tax on mining in data centers. According to State Duma Deputy Anton Gorelkin, this tax would be applied in two stages.

In the first stage, miners would have to pay tax on their mined coins as soon as they appear in their digital wallets. The second stage would involve either paying additional taxes or deducting losses when miners sell or transfer the mined crypto. Other types of mining will likely be taxed based on the amount of electricity consumed, which would apply to smaller operations. The government is still working on finalizing these tax plans, which are expected to be introduced by the end of the year.