In some areas, Russia is planning to increase its monitoring on crypto mining in the country to improve the government’s control over the compliance of the ban on crypto mining. The Ministry of Energy is considering the construction of a formal, compulsory registry to identify crypto mining equipment and maintain a single register of crypto mining equipment. This initiative can prevent the excess of electricity required to facilitate crypto mining operations, while restricting these activities in areas where they are banned by the government.
This initiative was proposed by the Russian state -owned publication Tass, Vice Minister of Energy Yevgeni Grabachak. Informed Earlier this week. “Fundamental tasks are to adapt to the mechanism to identify mining activities. The Russian Energy Ministry said in the report that it is important to customize the law to prepare a clear criteria to classify activities, especially as the production of digital currency.
During this time, Reports Citing Russia’s federal tax service (FNS), it was also claimed that Russian taxpayers involved in crypto mining businesses can now announce their crypto earnings through their individual accounts.
Crypto mining is the task of creating new tokens of cryptocurrency like bitcoin by solving complex proof-off-work (pows) algorithms on advanced computers. This process is infamous for large -scale energy consumption, which disrupts power supply in areas where crypto assets are mined.
Russia identified an increase in crypto mining activity in 2022. At that time, Grabachak called for the abolition of legal vacuum to regulate the activity. In 2023, Russia Emerged Behind America, as the second largest Crypto mining area in the world.
The country has banned crypto mining activities in some regions, including Dagestan, Ingushtia, Kabardino-Balkaria and Karachay-Charakesia. The ban went live on 1 January, and will expand by 15 March 2031. According to the comments of the ministry, even the ‘gray mining’ has not gone out of the operation in these areas. In gray mining, crypto miners install their systems in their homes and garages to continue mining.
According to the TASS report, the Chairman of the State Duma Committee on Energy, Nikolai Shulginov believes that this ban cannot solve the main problems, and gray mining plans can still be preserved.
