Russian authorities have recently introduced legal reforms requiring crypto mining operations to register with the government as part of efforts to regulate the rapidly expanding industry. However, resistance remains strong among miners, with only about 30% having complied with the registration mandates so far.
The main cause of this reluctance is miners' concern over potential taxes and increased government scrutiny. Many miners have traditionally operated with minimal oversight and wish to preserve anonymity, fearing the new rules would impose additional financial and regulatory burdens.
In response to the low compliance rate, Russian officials are considering creating a central registry to track mining hardware and operations. This measure aims to enhance transparency, curb illegal mining, and better manage energy consumption, particularly as crypto mining is banned in certain regions with weaker infrastructure during peak hours.
The Finance Ministry has emphasized the goal of bringing the crypto mining sector out of the informal economy to ensure proper taxation and regulation. Despite this, the process is incomplete, with two-thirds of miners still unregistered.
The reforms include a 15% tax on mining profits based on market value, while some taxes like VAT on crypto purchases have been lifted. Russian Bitcoin (BTC) miners continue to benefit from the country's affordable energy, making mining an attractive income source despite sanctions and economic challenges.
Overall, the government's push for regulation highlights the tension between maintaining industry freedoms and enforcing necessary controls to prevent illegal activity and protect the power grid.