Key Takeaways
- Russia’s mining industry is potentially getting a tighter set of regulations.
- If the law is passed, the Russian government will be able to enforce bans on crypto mining.
- The law could be coming into power on Nov. 1.
Russia has made another move to tighten control over its rapidly growing crypto mining industry.
The country’s lower house of parliament has passed new laws to clarify the roles of government agencies in regulating mining, including giving the government the power to ban crypto mining completely.
Russian Crackdown on Crypto Mining
Russia’s State Duma has passed key amendments to the country’s crypto mining law, which was legalized this summer.
The new amendments aim to establish clearer guidelines and requirements for crypto miners operating in Russia.
Among the most notable changes is the mandatory registration of large-scale miners and mining pools with the Federal Tax Service (FTS).
Private miners, on the other hand, will be exempt from registration requirements, but they will be subject to strict energy consumption limits.
Moreover, the new law grants the Cabinet of Ministers the authority to impose a blanket ban on crypto mining across Russia or in specific regions, should they deem it necessary.
The Ministry of Finance is keen on legalizing mining, saying it will attract investment and create jobs.
However, it’s also clear that the government wants to keep a close eye on the industry and make sure it’s not getting too big for its boots.
The amendments will now head to the Federation Council for a final vote. If approved, the new rules will take effect on Nov. 1, potentially marking a significant shift in Russia’s crypto mining industry.
Tax on Mining
In addition to regulating the mining industry, the Russian government is reportedly still exploring various tax options for different categories of crypto mining.
One of the new options being considered is income tax on mining in data centers, according to State Duma Deputy Anton Gorelkin.
The government previously proposed a two-stage tax proposal for mining in data centers.
Under the proposed framework, in the first stage, miners would face an initial tax payment on their mined coins as soon as they enter their digital wallets.
In the second stage, the FTS would impose another tax payment or deduction of losses when miners sell or transfer the mined crypto, depending on its sale value.
Other mining categories will likely be subject to a single tax on imputed income (UTII), which would be based on electricity consumption.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
