What will mining be like in Russia from November 1

We tell you how the work of miners in Russia will change from November 1 and what participants in the crypto community need to know in order not to break the law.

Changes for miners

On November 1, 2024, a new procedure for regulating miners comes into force. Here are the changes you should pay attention to:

1. Mining ban in certain regions. The Russian government will have the right to prohibit cryptocurrency mining in certain entities or territories. Restrictions also apply to participation in mining pools.
2. Register of miners managed by the Federal Tax Service. All companies and individual entrepreneurs engaged in mining will be required to register in the new register, which is now maintained by the Federal Tax Service, and not by the Ministry of Digital Development, as previously assumed. Hosting providers are prohibited from providing services to miners not included in the registry.
3. Transfer of wallet data. Data on miners’ cryptocurrency wallets will be transferred to a number of government agencies, including the FSB, Rosfinmonitoring and the prosecutor’s office.
4. Taxation. In the data processing center (DPC), miners will pay income tax. For private miners, an analogue of a single tax on imputed income will be introduced, taking into account electricity consumption.

The measures taken are aimed at legalizing and controlling cryptocurrency mining in Russia, taking into account the impact on the economy and the energy load on the regions.

Other initiatives you need to know about

There are other initiatives that may be approved before the end of the year. For example, Rosfinmonitoring proposes to oblige crypto exchanges that operate in the country to store all data about their clients and transfer it at the request of law enforcement officers. Meanwhile, the Ministry of Energy is developing new restrictions for miners. The initiative, if approved, will allow miners to be turned off when the power grid is overloaded.

Russia in the mining market

The Russian Federation attracts miners for a number of reasons, including the low cost and surplus of electricity, as well as the availability of rental premises. Climate also plays an important role. In some regions – for example, in Siberia – miners can save on equipment cooling. The popularity of mining in the country is indirectly indicated by the increase in the number of loans taken out against video cards for crypto mining.

According to the EMCD mining ecosystem team, Russia has already secured its status as the capital of mining. The movement of the authorities towards the formation of a transparent legislative framework for the mining of cryptocurrencies can increase the attractiveness of Russia for miners.

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