Russian Energy Ministry proposes creating registry of cryptocurrency mining equipment

MOSCOW. Feb 3 (Interfax) - The Energy Ministry has proposed creating a registry of equipment required for cryptocurrency mining to improve control over compliance with mining bans in certain regions, the ministry's press service.

The initiative was put forward by Deputy Energy Minister Evgeny Grabchak, it said.

The law legalizing cryptocurrency mining in Russia came into effect on November 1, 2024. In several regions, a mining ban has been in place since January 1, with restrictions set to last until 2031 in Russia's internal republics of the North Caucasian Federal District as well as in the Donetsk and Lugansk People's Republics and the Zaporozhye and Kherson regions. In addition, mining is temporarily restricted during peak energy consumption periods in the heating season in parts of the Irkutsk region, Trans-Baikal Territory and Buryatia.

"The key objective is to optimize mechanisms for detecting mining activity and ensure stricter compliance with bans in regions where it is not allowed," the ministry said.

Effective management of the cryptocurrency mining sector requires adjustments to the regulatory framework and an analysis of law enforcement practices, it said.

"It is important to adapt the law on mining to the current situation. In particular, relying on practical experience, we need to establish clearer criteria for classifying activities as cryptocurrency production," the ministry said.

Russian President Vladimir Putin signed the law legalizing cryptocurrency mining (the process of extracting digital currencies) in August 2024. According to the law, starting from November 1, 2024, all companies and individual entrepreneurs engaged in cryptocurrency mining in Russia must be included in a special registry maintained by the Federal Tax Service (FNS). Private individuals may engage in mining without registration, provided their electricity consumption does not exceed 6,000 kWh per month.