The Russian government‘s introduction of this framework follows the implementation of a law signed by President Putin in August, just before these rules took effect. This legislation officially designates cryptocurrency mining as a legal activity in Russia, setting safety and operational standards for miners and creating a structure for trading digital financial assets on specially approved platforms. The framework aims to bring clarity and oversight to Russia’s growing crypto industry amid increasing energy demands and concerns over illegal mining activities.
Under the new regulations, only registered organizations and individual entrepreneurs are allowed to legally conduct crypto mining. Russian individuals not formally registered as entrepreneurs can also mine, provided their monthly electricity consumption does not exceed 6,000 kWh. If they exceed this limit, they must register as entrepreneurs to continue their mining activities. This approach ensures smaller, individual mining operations remain viable while imposing stricter requirements on larger, potentially commercial ventures.
The framework also details reporting obligations for miners, requiring them to disclose the total digital currency output and provide transaction address identifiers to the Federal Tax Service (FTS). While these details are accessible only to law enforcement, this ensures oversight while maintaining a degree of privacy. Additionally, miners are required to ensure their operations meet standards for reliability, safety, and power stability to reduce risks to the local grid.