Russia to launch nationwide registry for crypto mining equipment

Russia’s Ministry of Energy plans to introduce a nationwide registry for crypto mining equipment, making registration mandatory for all operations.

According to a Feb. 3 TASS report, Deputy Minister of Energy Yevgeny Grabchak is leading the initiative to refine existing mining regulations and improve oversight. The move follows ongoing concerns about illegal mining, particularly in restricted regions.

The authorities intend to establish clearer criteria for defining crypto mining and address regulatory gaps that allow unregistered operations to thrive. The government said:

“It is important to adapt the law ‘On Mining’ to the current situation, in particular, based on practical experience, to formulate clearer criteria for classifying activities specifically as the production of digital currency.”

Despite previous bans, illicit mining in the country is rampant, and enforcement is proving difficult. Nikolai Shulginov, Chairman of the State Duma Committee on Energy, acknowledged that restrictions imposed in several Russian regions have not fully curbed unauthorized mining.

Easier tax compliance for miners

In a related move, Russia’s Federal Taxation Service (FNS) has introduced an online system allowing crypto miners to declare their earnings.

The report noted:

“A new function has appeared in the personal accounts of taxpayers. With the help of the online service, users can now send information about receiving digital currency to the tax authority.”

According to TASS, anyone with a qualified electronic signature will be able to access this feature. The system provides specific tax reporting forms for individuals, businesses, and entrepreneurs, aligning with broader efforts to integrate crypto into the economy.

Under Russia’s updated regulatory framework, digital assets are considered taxable property. While crypto transactions remain exempt from value-added tax, mining and trading profits now face a 15% tax rate.

These regulatory measures align with the government’s broader strategy to integrate crypto into the economy. The greater regulatory clarity has encouraged businesses and individuals to invest in Bitcoin mining and also use Bitcoin and stablecoins for their transactions.

In 2024, demand for industrial mining equipment in Russia surged threefold compared to the previous year.