FACTBOX: Russian government sets up requirements for cryptocurrency mining

MOSCOW:  The Russian government has prepared a regulatory framework for cryptocurrency mining, establishing requirements for infrastructure,...

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MOSCOW:  The Russian government has prepared a regulatory framework for cryptocurrency mining, establishing requirements for infrastructure, operators, and miners themselves.

The government is fulfilling the requirements of the law signed by Russian President Vladimir Putin in August. The law introduced the definition of mining, a set of security requirements, and the possibility of trading digital financial assets on special platforms.

Who can become cryptocurrency miners?

- Organizations and individual entrepreneurs will be able to engage in cryptocurrency mining after being included in the special register of the Federal Tax Service.

- Russians not registered as individual entrepreneurs will also be able to mine, but within the limit of 6,000 kWh per month.

- If the limit is exceeded, they would have to register as individual entrepreneurs.

What are miners’ responsibilities?

- Cryptocurrency miners are required to report to the Federal Tax Service how much digital currency they were able to "mine" and also the address identifier to which it was credited. These addresses will only be available to law enforcement agencies.

- Miners are also required to ensure the reliability, continuity, and security of the services provided, as well as to monitor the stable power supply.

How are the registers maintained?

- The register of cryptocurrency miners and operators of mining infrastructure is maintained in accordance with the rules approved by the Russian government.

- Information from the registers will be available to government agencies, the Bank of Russia, local grid organizations, and power systems.

- Cryptocurrency miners who launder money, bankrupts, and those who mine in prohibited areas, will be excluded from the register.

Areas, where mining is restricted

- The government may restrict cryptocurrency mining in certain areas. This may be due to the risk of power shortages.

- The decision to restrict will be made based on a proposal from the Commission for the Electric Power Development, if requested by the Ministry of Energy or the regions.

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