New Legislation in Russia Legalizes Cryptocurrency Mining – All You Need to Know
Russia has recently implemented a new law that legalizes cryptocurrency mining, bringing about significant changes to the industry. The law introduces energy consumption limits, mandatory registration, and strict oversight measures.
With the official recognition of mining as a legal activity, the law establishes safety and operational standards for miners and creates a regulated framework for trading digital financial assets on approved platforms. The objective is to provide clarity and regulatory oversight to Russia’s growing cryptocurrency sector, addressing concerns about energy usage and illegal mining.
Under the new regulations, only registered organizations and individual entrepreneurs are permitted to engage in cryptocurrency mining. However, unregistered Russian citizens can mine as long as their electricity consumption does not exceed 6,000 kWh per month. If the limit is exceeded, they must register as entrepreneurs to continue mining. This approach aims to support small-scale mining operations while imposing stricter requirements on larger, commercial-scale ventures.
In addition to registration, the regulations impose detailed reporting obligations on miners. They are now required to report the total amount of cryptocurrencies mined to the Federal Tax Service (FTS) and provide address identifiers for each transaction. To enhance oversight further, the government will maintain a registry of miners and mining infrastructure operators. This data will be accessible to various government agencies, including the Central Bank of Russia and regional energy authorities. The regulations also grant the Electricity Development Commission the power to impose mining restrictions in areas facing electricity shortages, based on recommendations from the Ministry of Energy or local authorities.
Please note that this article does not provide investment advice. If you wish to invest in over 300 cryptocurrencies, you can register with Binance exchange with a 20% commission discount by following this link.
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