Russia to Launch Crypto Mining Registry Amidst Illegal Operations

Russia is set to launch a nationwide registry for crypto mining equipment, aiming to improve oversight and address concerns about illegal mining operations. The initiative, led by Deputy Minister of Energy Yevgeny Grabchak, seeks to refine existing mining regulations and establish clearer criteria for defining crypto mining.

The move comes amid ongoing concerns about illicit mining, particularly in restricted regions. Despite previous bans, unauthorized mining remains rampant, and enforcement has proven challenging. Nikolai Shulginov, Chairman of the State Duma Committee on Energy, acknowledged that restrictions imposed in several Russian regions have not fully curbed unauthorized mining.

In a related development, Russia's Federal Taxation Service (FNS) has introduced an online system allowing crypto miners to declare their earnings. The new function, available in the personal accounts of taxpayers, enables users to send information about receiving digital currency to the tax authority. This 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, encouraging businesses and individuals to invest in Bitcoin mining and use.