Russia Launches National Registry to Tax 70% of Unregistered Crypto Miners

Russia has launched a national registry to track and tax cryptocurrency miners, aiming to identify and control illegal mining operations that evade taxes and misuse electricity. This initiative, led by the Ministry of Energy in collaboration with the Federal Tax Service and the Ministry of Digital Development, follows reports that only 30% of miners have registered with authorities since crypto mining laws were introduced in late 2024. The registry is designed to support enforcement in regions where mining is banned and to complement proposed legislation that seeks to increase penalties for illegal mining operations.

Deputy Energy Minister Petr Konyushenko emphasized that the registry is a crucial step toward legalizing the industry and applying appropriate regulation and taxation, as well as curbing illegal electricity consumption. The registry has already been sent to regions experiencing heightened mining activity, and authorities are working to integrate the remaining 70% of miners into the legal framework.

Russia first announced plans to create the registry in February, with a focus on supporting enforcement in areas where crypto mining is banned. Since November, the country has been enforcing legislation that defines and regulates mining businesses, with a six-year ban imposed on mining activities in ten regions until March of 2031 to prevent blackouts. Additionally, the Ministry of Digital Development is drafting new legislation to increase fines for illegal mining operations tenfold—from 200,000 rubles to 2 million rubles. Enforcement efforts have already resulted in the shutdown of several illicit mining farms, including one discovered in a garage in Bataysk and another that was concealed in a truck siphoning electricity from a remote village in the Pribaikalsky region.

This move by Russia to regulate its crypto mining sector is part of a broader effort to bring the industry under control and ensure that it contributes to the national economy through proper taxation. By tracking and taxing crypto miners, Russia aims to address the issues of tax evasion and electricity misuse, which have been significant concerns in the industry. The registry will help authorities identify illegal operators and enforce the existing laws more effectively.

The initiative also aligns with the global trend of governments seeking to regulate the crypto industry more closely. While Russia is focusing on tax evasion and electricity misuse, other countries are also grappling with how to tax cryptocurrencies and integrate them into their financial systems. For example, in the US, there have been discussions about modernizing crypto tax rules and exempting small transactions, staking rewards, and donations from taxation. These efforts reflect the growing recognition of the importance of the crypto industry and the need for clear regulatory frameworks.

Overall, Russia's launch of a national registry to track and tax crypto miners is a significant step toward regulating the industry and ensuring that it operates within the legal framework. By addressing the issues of tax evasion and electricity misuse, Russia aims to create a more transparent and accountable crypto mining sector that contributes to the national economy. This initiative is part of a broader global effort to regulate the crypto industry and integrate it into the financial systems of various countries.