Russia Mandates National Registry for Cryptocurrency Miners to Curb Illegal Energy Use

Russia has taken significant steps to regulate its cryptocurrency mining sector, aiming to eliminate tax evasion and illegal energy consumption. The government has introduced a national registry to track all mining equipment, requiring miners to report their earnings directly to the Federal Tax Service portal. This move is part of a broader effort to legalize the industry and reduce the consumption of energy by illegal operations.

An official of the Finance Ministry, Ivan Chebeskov, stated that despite certain laws being adopted, only 30% of miners had signed the official register of the Federal Tax Service since the end of 2024. This indicates that a significant portion of miners are still operating outside the legal framework, which is a concern for the government.

Deputy Energy Minister Petr Konyushenko emphasized that the registry is a crucial step toward legalizing the industry and curbing illegal energy usage. By mandating the registration of all mining rigs, Russia seeks to bring transparency to the sector and ensure that all miners comply with tax regulations. This initiative is expected to help the government monitor and control the energy consumption of mining operations, which have been a significant concern due to their high energy demands.

The new regulations require all miners to register their equipment nationally and report their earnings through the Federal Tax Service portal. This measure is designed to prevent tax evasion and ensure that the government can accurately assess and collect taxes from the cryptocurrency mining sector. The registry will also help in identifying and shutting down illegal mining operations that consume energy without proper authorization.

The introduction of the national registry is part of Russia's broader strategy to regulate the cryptocurrency sector. By bringing mining operations under government oversight, Russia aims to create a more stable and predictable environment for the industry. This move is expected to benefit both the government and legitimate miners, as it will help in reducing energy costs and ensuring compliance with tax laws.

The government's efforts to regulate the cryptocurrency mining sector are likely to have a significant impact on the industry. By eliminating tax dodgers and illegal energy consumption, Russia aims to create a more sustainable and transparent mining ecosystem. This move is expected to attract more legitimate investors and miners to the sector, as it will provide a more stable and predictable regulatory environment.

Despite these efforts, the full legalization of mining has not yet been achieved. According to the chief analyst of a local exchange, some norms have been established by law that simplify control over industrial mining, but clear regulations are still lacking. This suggests that while progress has been made, there is still work to be done in fully legalizing and regulating the cryptocurrency mining sector in Russia.