Russia Launches Crypto Mining Registry to Curb Illegal Activities

Russia has initiated a national registry for cryptocurrency mining equipment, aiming to curb illegal mining activities and unauthorized electricity usage. This registry is a collaborative effort between the Ministry of Energy, the Federal Tax Service, and the Ministry of Digital Development. The primary objective is to create a unified database of all crypto mining machines operating within the country.

The registry requires all crypto miners to register their mining rigs by providing details such as serial numbers, device models, and other relevant equipment information. This process enables authorities to identify electricity consumers involved in cryptocurrency mining and ensure they comply with mining regulations and taxation laws.

Deputy Minister of Energy Petr Konyushenko emphasized that the registry is a crucial step towards legalizing the crypto mining industry and reducing unregulated electricity consumption. This has been a significant issue, leading to substantial losses for power companies and energy shortages in certain regions. The registry was particularly targeted at areas with high mining activity, where illegal connections and subsidized residential electricity have been prevalent.

The registry program was proposed in February 2025 during a working meeting on the regulation of digital currency extraction, with support from the Ministry of Industry in May. This initiative follows the legalization of cryptocurrency mining in Russia in 2024, allowing companies and individual entrepreneurs to mine digital coins legally as long as they are registered and pay taxes.

The registry will also facilitate tax collection, as the Federal Tax Service will be able to monitor mining activities more accurately. Miners are required to declare the amount and price of the mined cryptocurrency, aligning with Russia's new tax system. Under this system, the revenue from mining and cryptocurrency trades is taxed at 15 percent, and crypto transactions are not subject to value-added tax.

Individuals are permitted to mine privately without registering if they use up to 6,000 kWh of electricity per month. However, they must still report their mining revenue to the appropriate tax authorities. The crackdown on illegal mining is also aimed at stabilizing the power grid, which has been overloaded by illegal mining farms. Recent actions include the closure of major illegal mining farms, such as one with 240 rigs in Sayansk and another in a warehouse at St. Petersburg.

The registry complements other control measures, such as an online tax declaration system for crypto miners implemented by the Federal Tax Service. This system allows qualified miners to use their electronic signatures to report their earnings and pay taxes more efficiently.