Russia Establishes National Register for Crypto Mining Hardware to Curb Unlicensed Operations

Russia has taken a significant step towards regulating its cryptocurrency mining industry by establishing a national register for crypto mining hardware. This initiative is overseen by key ministries, including the Ministry of Energy, the Federal Tax Service, and the Ministry of Digital Development. The register is designed to collect detailed information about hardware owners and share this data with regional authorities. This move comes as local officials grapple with the increasing number of unlicensed mining farms that tap into power lines, leading to higher costs for utilities and straining the power grid.

Under the new regulations, miners who consume more than 6,000 kWh of electricity per month are required to register and report their assets. However, many small-scale miners have yet to comply with these requirements. The register aims to bring these operators into the formal system, ensuring that they adhere to national tax and energy regulations. This shift is part of a broader effort to move away from informal operations and towards a more structured framework for the crypto mining sector.

In addition to the national register, the national grid operator Rosseti has collaborated with telecom firms to detect unusual internet traffic that could indicate the presence of hidden mining sites. Several regions experiencing energy shortages have implemented temporary and permanent bans on mining activities. These measures are intended to protect local grids and discourage operators who disregard regulations to maximize their yields without bearing the associated costs.

President Vladimir Putin recently defended the updated policy at a development forum, highlighting regional complaints about power deficits. He emphasized that the government had no choice but to act to safeguard energy supplies. Law enforcement agencies have already dismantled a large illegal mining facility in Krasnoyarsk Krai, which spanned 30,000 square meters and was disguised as an industrial warehouse. This action underscores the government's commitment to enforcing the new regulations and ensuring compliance.

The establishment of the national register represents a decisive move towards aligning Russia’s crypto mining sector with national tax and energy regulations. It reflects a shift from informal operations towards a more orderly framework. The effectiveness of this approach in curbing electricity theft and boosting tax revenues will become evident as authorities conduct compliance checks and audits. The new register is expected to bring greater transparency and accountability to the crypto mining industry, ensuring that all operators contribute to the national energy grid and tax system.