Russia introduces regulatory framework for crypto mining, defining it as a legal activity and stipulating requirements for miners to operate

Odaily News The Russian government has introduced a regulatory framework for cryptocurrency mining, marking the implementation of a law signed by President Vladimir Putin in August and published shortly before these rules came into effect. The law officially defines cryptocurrency mining as a legal activity in Russia, sets out safety and operational requirements for miners, and creates a structure for trading digital financial assets on specially approved platforms. The framework aims to bring clarity and oversight to Russia's growing cryptocurrency industry amid growing energy demand and growing concerns about illegal mining activities. Under the new regulations, only registered organizations and individual entrepreneurs can legally engage in cryptocurrency mining. Russian individuals who are not officially registered as entrepreneurs can also mine, but their monthly electricity consumption must not exceed 6,000 kWh. If they exceed this cap, they need to register as entrepreneurs to continue mining activities. This approach ensures that smaller individual mining operations remain viable while imposing stricter requirements on larger, potentially commercially valuable operations. The regulation also imposes detailed reporting obligations on miners, requiring them to disclose the total amount of digital currency produced and provide the Federal Tax Service (FTS) with address identifiers for each transaction. This information can only be accessed by law enforcement agencies, facilitating oversight while ensuring a certain level of privacy. In addition, miners must ensure that their operations meet standards for reliability, safety, and power stability, thereby reducing risks to local power grids. (Bitcoin.com)