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Russia has established a national database for cryptocurrency mining equipment, indicating a significant advancement in its initiative to formalize and govern the field.
As per state-controlled media outlet RIA Novosti, the database has already been implemented in prominent regions with significant mining activities and is aimed at assisting authorities in more effectively tracking energy consumption related to mining operations.
This initiative, jointly orchestrated by the Ministry of Energy, the Federal Tax Service, and the Ministry of Digital Development, represents an extension of the country’s overarching regulatory authority over the cryptocurrency mining domain.
Government Enhances Oversight Through Energy-Centric Monitoring and Taxation
The establishment of the database follows earlier governmental actions to limit unregulated mining activities, especially in regions facing stress on power infrastructure.
In February, the Ministry of Energy initially suggested the registry as a means to monitor cryptocurrency mining activities based on their energy consumption footprint.
Officials contend that this measure is essential not only for efficient taxation but also for maintaining regional energy stability, particularly given the increase in mining associated with Russia’s low electricity expenses and conducive environment for mining equipment.
The registry complements multiple recent policy advancements aimed at tightening oversight over digital asset operations in Russia. Earlier this year, miners were officially permitted to declare their cryptocurrency income online through a system established by the Federal Tax Service.
This followed the formal establishment of a legal tax structure for cryptocurrency mining that was ratified by President Vladimir Putin and is set to take effect in 2025. The framework empowers authorities to tax mining revenues while providing a legal basis for enforcement actions.
Mining Prohibitions, Asset Confiscations, and the Move Towards Complete Compliance
In conjunction with these developments, Russian authorities have also instituted a multi-year prohibition on cryptocurrency mining in six energy-constrained regions.
The prohibition, which will remain in effect until March 15, 2031, aims to ease power deficits caused by unregulated, energy-heavy mining operations. Officials have not revealed the identities of all impacted regions, but prior reports mentioned Irkutsk and Dagestan among the high-consumption locations attracting government attention.
Additional legislative actions are in the works as well. The Ministry of Digital Development has reportedly introduced a new bill that would allow courts to seize digital assets and impose substantial fines on individuals or organizations breaching mining regulations.
According to Forbes Russia, the maximum penalty for corporate entities could soar to 2 million rubles, or roughly $22,000. Although this legislation remains pending, it is part of a larger endeavor to incorporate cryptocurrency mining into Russia’s official regulatory and economic frameworks.
The nation has emerged as one of the globe’s foremost centers for proof-of-work mining, particularly for Bitcoin. With its abundant energy resources and previously lenient oversight, Russia’s share of the worldwide hash rate has increased in recent years.
Nevertheless, the latest actions indicate a shift towards centralized governance, where only registered and tax-compliant mining operations may continue functioning without legal repercussions.
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