According to a local publication, the Russian Ministry of Energy, in conjunction with the Ministry of Digital Development and the Federal Tax Service, has created a “registry” dispatched to regions exhibiting heightened mining activities. Ivan Chebeskov, an official from the Finance Ministry, revealed that despite the implementation of certain regulations, only about 30% of miners have registered with the Federal Tax Service since late 2024.
A Progression in Regulatory Measures
RIA Novosti has reported that Russia is making strides toward enacting stricter laws aimed at curbing the improper exploitation of the national energy grid. The existing framework mandates that individuals and enterprises involved in mining must register with the Federal Tax Service. Citizens are permitted to mine up to 6,000 kWh monthly without needing to obtain entrepreneur status; however, those who exceed this threshold are required to register accordingly. In remarks to the publication, Petr Konyushenko, the Deputy Energy Minister, emphasized that establishing such a register is crucial for accurately identifying electricity consumers engaged in mining. This is essential for the application of targeted regulations and taxation.
In late 2024, President Putin ratified two significant laws. One of these laws defines key terms related to mining and mining pools while stipulating requirements for registration and reporting for businesses. It also restricts foreign nationals from mining in Russia and empowers the government to impose restrictions in designated areas. The second law addresses the circulation of digital currencies and sets forth regulations governing mining operations. Despite the enactment of these laws, Nikita Zuborev, chief analyst at the local exchange BestChange, stated that clear regulations are still lacking: “Mining has not achieved full legalization. Instead, it can be said that some legal norms have been introduced that facilitate oversight of industrial mining.”
The Current Regulatory Environment in Russia
Since the onset of the conflict with Ukraine in early 2022, Russia has been subjected to severe sanctions from the European Union. This has led to the suspension of services by prominent exchanges like Deribit for Russian nationals unless they meet specific criteria, including holding dual citizenship with other EEA countries, Switzerland, or being long-term residents in those regions. Domestic companies, however, were entirely exempt from using the exchange. Furthermore, a seasonal ban was imposed on mining activities in certain regions during the winter months to prevent blackouts. These restrictions differ across regions controlled by Russia and Ukraine, with timelines varying from as early as March this year to as late as March 3031, with some remaining in effect annually. PAO Rosseti, a Russian energy company, is currently investigating the potential for hosting mining infrastructure by leveraging the country’s unused energy resources. While cryptocurrency mining is considered legal, trading cryptocurrencies remains prohibited at this time. Despite these challenges, the decentralized finance (DeFi) sector continues to experience significant institutional adoption, as previously reported by CryptoPotato.
