Russia’s Ministry of Energy has announced plans to establish a mandatory registry for crypto mining equipment, requiring all mining operations to register their hardware, according to a report from state-owned news agency TASS.

Once implemented, unregistered crypto mining would be prohibited, effectively making it “impossible” to operate outside the system, the report stated.

The initiative, spearheaded by Deputy Minister of Energy Yevgeny Grabchak, is part of proposed amendments to existing mining regulations to refine existing mining regulations and improve oversight. This move is targeted towards the ongoing concerns about illegal mining, particularly in restricted regions.

In November 2024, Russian authorities imposed crypto mining bans in six regions, including certain occupied Ukrainian territories. The restrictions, in effect from December 2024 to March 2031, were reportedly introduced to prevent power shortages in these areas.

Despite all these regulations, illicit mining in the country is still rampant, and enforcing the law is also proving to be a very difficult task. Nikolai Shulginov, the Chairman of the State of Duma Committee on Energy also acknowledged that restrictions imposed in several Russian regions have done little to curb the spread of unauthorised mining.

New Crypto Mining Tax Framework

On top of the registry, crypto miners in Russia are also expected to report their digital currency earnings to the Russian government. Under Russia's updated regulatory framework, digital assets are not considered as a taxable asset.

This regulatory framework was put in place by Russian President Vladimir Putin on November 29, 2024, and took effect at the start of this year. Under the framework, miners with annual crypto earnings of up to 2.4 million rubles ($23,976) are taxed at 13%, while those exceeding this threshold are taxed at 15%, according to the Digital Watch Observatory.

These regulatory measures also reflect the country's broader intention of integrating crypto into the economy. This greater regulatory clarity has encouraged businesses and individuals to invest in bitcoin mining and also use bitcoin and stablecoin for their transactions.