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Russian President Vladimir Putin has authorized a new law that positions the Federal Tax Service (FTS) at the helm of a national registry for industrial crypto miners. This development, first reported by Izvestia, transitions the oversight responsibility from the Ministry of Digital Development to the FTS, a move designed to streamline the taxation and regulation of the crypto mining sector.
The law targets industrial miners, requiring them to register and disclose comprehensive transactional and operational details. This includes data on crypto and currency sale orders, identifiers, and transaction histories. The law exempts home-based miners from registration, provided they stay within designated energy consumption limits.
The legislative update is part of Russia’s broader effort to manage the energy consumption of the crypto-mining industry more effectively. This has become increasingly crucial in regions like Southern Siberia, where power shortages have been frequent. The new law also empowers local governments to enforce temporary mining bans to mitigate energy supply issues, particularly in areas like Buryatia and the Irkutsk region—the latter being recognized as Russia’s unofficial Bitcoin mining capital.
The amended regulation also confers new powers on several government agencies, including Rosfinmonitoring and the Federal Security Service (FSB). These bodies are now authorized to access extensive transaction data, enhancing the state’s ability to monitor and regulate the industry. Additional provisions have been made for these agencies to conduct searches and demand information to curb illegal mining activities that strain the power grid.
The transition of oversight to the FTS is anticipated to have substantial economic implications. The law, which legalizes the operations of industrial miners, is expected to contribute dollars annually to the Russian treasury as a sign of the legalization of the Bitcoin mining business.
Stakeholders in the mining sector have endorsed the law since it will promote the development of formal mining sectors while preventing the destructive acts of illegal miners.
Moreover, the shift is a potential boon for the IT sector, creating new jobs and developing technological infrastructure. Oleg Ogienko, Chief of BitRiver Communications, highlighted the positive impact expected from integrating mining activities into the legal and regulatory framework. Following the enactment of Russia's first crypto mining legalization law on August 9, significant investments have been planned, including collaborations to establish mining and AI facilities within BRICS member states.
