Only 30% of Russian crypto miners registered, says finance ministry

Most of the crypto miners in Russia don’t comply with the regulations the country imposed on mining. Russia is taking steps to legalize and regulate crypto mining to bring it out of the informal economy. Still, most crypto miners in the country fall outside relevant regulation, authorities say. On Tuesday, June 19, the Finance Ministry revealed that just 30% of miners are registered with the relevant tax authorities. According to Deputy Finance Minister Ivan Chebeskov, registering crypto mining entities is still an ongoing process. The authorities aim to bring miners into the regulated economy, where they can be taxed and managed. “Our general approach, when we introduced regulation of mining in this industry, was to bring this industry out of the shadows as much as possible. We have not yet completed this process. So far, only 30% of all miners have entered the register maintained by the Federal Tax Service, and this process is still far from complete. Another 2/3 need to be “cleaned up” and entered into the register. Therefore, we will work to complete this process,” Chebeskov said. Still, taxation is not the only reason for registration. Starting in 2025, Russia has banned crypto mining in certain regions with weaker infrastructure, especially during peak hours. The goal is to reduce the strain on electrical grids. You might also like: Russia to impose regional controls over crypto mining starting Jan 2025 Russia moves to formalize crypto mining Russia legalized crypto mining in 2023 as part of its ongoing effort to tax and regulate the industry. In 2024, the country imposed a 15% tax on cryptocurrency mining profits, based on market value when received. However, it also lifted some taxes, including VAT on crypto purchases. For Russian citizens and businesses, Bitcoin (BTC) mining remains a profitable way to leverage the country’s cheap energy prices. At the same time, low living standards and ongoing sanctions make it a competitive way for both individuals and companies to earn income. Read more: Bitcoin miners in Russia worry about sanctions as government starts collecting wallet addresses

Source: crypto.news