Russia has launched a nationwide register of mining hardware, enabling authorities to identify and tax miners to curb rampant electricity theft that fuels illegal crypto farms.
Russia’s government has introduced an official register for crypto mining equipment to help authorities clamp down on illegal mining activities nationwide. The Ministry of Energy spearheads the initiative in cooperation with the Federal Tax Service (FNS) and the Ministry of Digital Development.
It aims to identify miners accurately and enforce proper taxation. Deputy Energy Minister Petr Konyushenko confirmed to state news agency RIA Novosti.
The data from the register has already been shared with regional authorities experiencing surges in mining operations, many of which have been illegally siphoning electricity. This is costing both utilities and the state significant losses while straining power supplies.
Russia Legalized Mining, But Illegal Crypto Farms Persist
Russia legalized crypto mining in mid-2024, allowing both companies and registered entrepreneurs to mine digital assets legally. Under current regulations, private citizens can mine without registration only if their electricity usage stays below 6,000 kWh per month. However, beyond this limit, they must register and pay taxes on mined coins. Still, only a fraction of miners have complied.
The government sees the register as a step towards legitimizing the entire industry. The Russian Ministry of Industry supported the proposal earlier this year, following initial discussions on digital mining regulation in February.
Authorities Expand Hunt for Underground Crypto Farms
Meanwhile, other government bodies have stepped up efforts to locate illegal miners. In June, the national grid operator Rosseti announced it is working with telecom companies to develop a mechanism for tracking suspicious internet traffic patterns, which could help detect unregistered mining facilities.
The Russian government has also imposed both seasonal and permanent mining bans in regions struggling with energy shortages. Currently, mining is banned for six years in over a dozen areas.
President Vladimir Putin defended these restrictions this week, highlighting regional complaints about worsening energy deficits:
“We were forced to make certain decisions in the mining sphere,” Putin told a development forum.
Major Illegal Mining Farm Busted in Siberia
Notably, the crackdown has already yielded results. Last month, authorities in Krasnoyarsk Krai, a major mining hotspot in Siberia, dismantled a massive illegal crypto farm spread across 30,000 square meters, camouflaged as a non-residential industrial facility.
Law enforcement continues to target rogue operations siphoning electricity in energy-deficient parts of Russia. The register, combined with stricter enforcement, marks Russia’s latest effort to bring its lucrative but often underground crypto mining sector fully into the legal fold.
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