The Russian Energy Ministry has taken a significant step towards cracking down on illegal crypto mining activities in the country. In a bid to boost tax revenues and ensure compliance with mining-related laws, the ministry has started compiling a national registry of crypto mining rigs.
According to a report by the state-run newspaper RIA Novosti, the ministry is working closely with the Federal Tax Service and the Ministry of Digital Development to create a central database of all equipment used for cryptocurrency mining in Russia. This registry will require miners to submit details such as rig serial numbers, device models, and other relevant information.
Deputy Minister of Energy, Petr Konyushenko, emphasized the importance of this registry in identifying individuals and businesses that are using electricity for crypto mining purposes. By having a comprehensive database of mining equipment, regulators and tax officials will be able to ensure that miners are operating within the legal framework and contributing their fair share of taxes.
The ministry believes that this initiative will help curb illegal energy consumption and bring more transparency to the crypto mining industry in Russia. While legal crypto mining activities are on the rise, there is also a growing underground sector that operates outside the law. Many illegal miners tap into power grids without authorization or use subsidized electricity meant for residential households to power their operations.
Critics of the ministry’s plan, including lawmaker Anton Gorelkin, have raised concerns about the effectiveness of the registry in combating illegal mining activities. Gorelkin suggested that the focus should be on helping miners legalize equipment purchased through unauthorized channels, rather than creating a registry that may not address the root causes of illegal mining.
In recent months, authorities in various Russian cities have conducted raids on illegal crypto mining farms and seized equipment used for unauthorized mining operations. These crackdowns highlight the need for stricter regulations and enforcement measures to ensure that the crypto mining industry operates within the bounds of the law.
Overall, the creation of a national registry of crypto mining rigs is a significant development in Russia’s efforts to regulate the growing cryptocurrency industry. By promoting transparency and compliance, the ministry aims to create a more sustainable and accountable crypto mining sector that contributes positively to the country’s economy.