Putin Signs Second Russian Crypto Mining Law as Nation Prepares to Tax Miners
Vladimir Putin has approved a new legislation that will transfer the control of the Russian crypto mining registry to the country’s tax authority. The Federal Tax Service (FTS) will now oversee the registry of industrial crypto miners, excluding home-based miners who do not exceed energy usage limits. This law is an amendment to a bill that was quickly passed through the State Duma earlier this year, which originally granted control of the registry to the Ministry of Digital Development. However, the FTS determined that in order to effectively tax crypto miners, it needed full control over the registry.
Under the new law, the tax authority will have the ability to monitor the currency and crypto sale orders of all industrial miners. This means that Russian tax authorities will have access to information about cryptoasset movements, including identifier addresses and transaction histories. Additionally, government agencies such as Rosfinmonitoring, the anti-money laundering body, and the Federal Security Service (FSB), will also be able to access transaction data. Furthermore, various government-aligned bodies will have the power to conduct searches or request information.
A significant aspect of the bill is the provision for temporary bans. Individual regions will be allowed to impose temporary local bans on crypto mining, which is a response to energy issues in regions like Buryatia. The region has experienced power problems attributed to miners in neighboring Irkutsk, which is considered Russia’s unofficial Bitcoin mining capital. Irkutsk has recently cracked down on illegal miners due to concerns about grid operations in Southern Siberia. Some miners may welcome this news as it could put an end to Ministry of Energy proposals that suggested legal miners shut down their mining rigs for several weeks each year to avoid potential power problems.
Russian officials are determined to avoid the electricity shortages and blackouts experienced in the de facto state of Abkhazia, which were blamed on crypto miners. Putin is actively pushing for Russia’s crypto industry to thrive, and multiple bills are being developed to regulate the sector. Industrial crypto miners have stated that allowing the FTS to supervise their activities will generate millions of dollars in tax revenue for the Treasury. The industry views this new law as a step towards legitimizing an industry that has long operated in the shadows.
Oleg Ogienko, the chief of BitRiver Communications, believes that bringing mining into the legal field will stimulate the IT sector and create job opportunities. It is also claimed that legislative measures will help combat illegal miners, who are responsible for energy shortages in certain regions. Since the signing of the first crypto mining legalization law on August 9, BitRiver and other companies have wasted no time in making progress. Russia’s largest miner has announced plans to collaborate with a government agency to establish crypto mining and artificial intelligence facilities in BRICS member states. Additionally, Russian regions are actively working on building crypto mining centers in unexpected parts of the country.
