Russia is launching a national database of cryptocurrency mining equipment, aiming to bring 70% of unregistered Miners into line with the law and prevent electricity theft.
Government Russia Russia is stepping up measures to clamp down on the booming but poorly regulated cryptocurrency mining industry. The Russian Energy Ministry, in collaboration with the Federal Tax Service and the Ministry of Digital Development, has officially launched a national database of mining equipment. crypto .
The list has been transferred to regions with increased mining activity, marking a comprehensive effort to eliminate unregistered mining facilities and illegal power systems that cause losses to the national grid, state news agency RIA Novosti reported.
The move comes as much of the crypto mining industry remains in a legal grey area. According to Ivan Chebeskov, a senior official at Russia’s Ministry of Finance, only about 30% of crypto Miners will be registered with tax authorities by the end of 2024, despite the law governing the sector coming into force.
This means that the remaining 70% is still outside the legal framework and does not contribute to the state budget. Deputy Energy Minister Petr Konyushenko affirmed that the establishment of a national database is an important step towards legalizing the industry and reducing illegal electricity consumption.
Russian authorities discovered a truck containing illegal cryptocurrency mining equipment, stealing electricity from the local grid. Source: Babr MashHe also emphasized that through this database, authorities will easily identify entities using electricity for crypto mining purposes, thereby implementing management measures and applying appropriate specific taxation mechanisms.
The plan is not a single action, but part of Russia’s overall strategy to control the crypto mining industry. A bill came into force in November last year, establishing legal definitions and registration requirements for crypto mining businesses.
The government has also imposed a total ban on mining in 10 regions for six years, until March 2031, to prevent widespread blackouts. Meanwhile, a new draft law is being drafted that would increase the fine for illegal mining tenfold, from 200,000 rubles (about $2,534) to 2 million rubles (about $25,500).
These strict legal measures are being translated into a crackdown on the ground. In June, authorities dismantled several illegal crypto mining facilities. Notably, one farm was disguised in a garage in the city of Bataysk and another was cleverly concealed inside a truck, using electricity stolen from a village in the Pribaikalsky region.
