Russia Launches Crypto Mining Registry to Combat Tax Evasion and Illegal Energy Use

The Russian government has launched a national registry for cryptocurrency mining operations to combat tax evasion and unauthorized energy consumption. This initiative involves the Energy Ministry, the Federal Tax Service, and the Ministry of Digital Development, who have compiled a register and distributed it to regions with high miner activity. The registry aims to identify and regulate consumers using electricity for mining purposes, ensuring they comply with special taxation and regulation measures.

Despite the introduction of crypto mining laws, only 30% of miners have registered with the Federal Tax Service since late 2024. The Finance Ministry is working on measures to bring the remaining 70% into the legal framework. Deputy Energy Minister Petr Konyushenko emphasized that this registry is a step towards legalizing the industry and reducing illegal energy consumption. The Energy Ministry first proposed this registry in February to enforce bans on mining in prohibited regions.

The Russian government began enforcing a crypto mining-related bill in November, which introduced legal definitions and registration requirements for mining businesses. Additionally, crypto mining, including mining pool activity and individual mining, has been banned in 10 regions for six years to prevent blackouts. The ban is effective until March 15, 2031. The digital development ministry is also working on a new bill to increase fines for illegal crypto mining operations to 2 million Russian rubles, up from the current 200,000 rubles.

Russian authorities have already taken action against several illegal crypto-mining operations this year. In June, local police discovered a mining farm in a garage complex in the city of Bataysk. Additionally, authorities shut down a crypto mining operation hidden inside a truck siphoning electricity from a village in the Pribaikalsky region. These actions underscore the government's commitment to enforcing regulations and combating illegal activities in the cryptocurrency mining sector.

This initiative is part of a broader effort to regulate the cryptocurrency sector, which has seen significant growth in recent years. The registry will require all cryptocurrency mining operations to register with the government, providing detailed information about their energy consumption and tax payments. This move is expected to help the government better monitor and control the cryptocurrency mining industry, ensuring that it operates within the bounds of the law and contributes to the national economy. By addressing tax evasion and energy shortages, the government aims to promote sustainable development and protect the environment while ensuring the cryptocurrency industry operates legally and contributes positively to the economy.