Russia’s Energy Ministry requires mining operations nationwide to sign up their mining equipment into an official national database.
Under Yevgeny Grabchak Mr Deputy Minister of Energy a nationwide mining equipment registry started for better energy sector management. TASS reported on February 3 that the government wants to handle mining rule-breaking that happens in zones where mining is forbidden.
Russia’s Efforts to Curb Illicit Mining through Regional Bans
The new system will show which activities count as legal mining while stopping operations that work outside proper regulations. Grabchak wants the government to rewrite its mining legislation because practical knowledge shows the need to create clear rules for digital currency production. The government said:
“It is important to adapt the law ‘On Mining’ to the current situation, in particular, based on practical experience, to formulate clearer criteria for classifying activities specifically as the production of digital currency.”
Past attempts to limit illegal mining through regional bans have not succeeded because the authorities struggle to enforce the controls. Nikolai Shulginov as Chairman of the Energy Committee told us that illicit mining operations spread easily across restricted zones which makes it hard to adequately control the sector in Russia.
The Federal Taxation Service of Russia (FNS) now allows crypto miners to declare their income through their newly developed online system. The report noted:
“A new function has appeared in the personal accounts of taxpayers. With the help of the online service, users can now send information about receiving digital currency to the tax authority.”
The Role of Taxation in Russia’s Push to Integrate Cryptocurrencies
According to TASS, through this platform users can safely transmit digital currency transaction by using a qualified electronic signature. The system lets individuals businesses and entrepreneurs submit their tax reports since the government works to accept cryptocurrency in their organized economy.
Digital assets now fall under Russia’s tax regulations as they are classified as taxable property within the updated rules. Although crypto transactions stay free of value-added tax trading and mining profits must pay a 15% tax rate. The government created this monitoring system within their plan to integrate cryptocurrencies into their economy and study their effects.
The new regulations created more demand for Bitcoin mining activities as a result. Russia needed three times more industrial mining equipment for its crypto sector in 2024 compared to 2023 despite further changes in regulations.
Russia pursues two strategies for cryptocurrencies by creating control measures plus opening opportunities for widespread economic use.
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