Russian government approves requirements for currency miners and mining infrastructure operators
MOSCOW. Nov 1 (Interfax) - The Russian government has completed preparations for a legal framework to regulate cryptocurrency mining, the government's press service said.
According to law no. 221-FZ on the legalization of cryptocurrency mining in Russia, legal entities and individual entrepreneurs can engage in cryptocurrency mining after being included in a special register maintained by the Federal Tax Service. Citizens without individual entrepreneur status can also participate in mining within a defined energy consumption limit.
The government set this limit at 6,000 kWh per month. If this limit is exceeded, individuals will be allowed to continue mining only after registering as an individual entrepreneur and being added to the register.
The rules for maintaining the register of individuals engaged in cryptocurrency mining and the register of mining infrastructure operators have been established by a separate government decree. Through electronic interaction between agencies, information from these registers will be provided to state bodies, courts, the Central Bank, regional network organizations, and the operator of electricity systems of Russia.
In cases of inaccurate information, repeated violations of the anti-money laundering law within a year, breaches of electricity consumption rules in areas where mining is prohibited, or in the event of bankruptcy, miners will be removed from the register.
Resolutions have also been signed to approve the rules for establishing bans on mining and the specific features of connecting mining facilities, as well as procedures for restricting mining in specific regions or areas.
Restrictions may be imposed for a certain period if there is a risk of electricity shortages. The government will make this decision based on proposals from the government commission on energy development formulated following requests from the Energy Ministry or regional heads.
Mining infrastructure operators must ensure the continuity and reliability of provided services, the security of processed information and the resilience of the power supply system, as well as establish internal control and risk management departments.
Miners' responsibilities include providing the Federal Tax Service with information about volumes of obtained cryptocurrency and the identifier address where the cryptocurrency was credited. Federal executive authorities, prosecutors, investigative bodies and agencies conducting searches may be provided with or access the identifier addresses.