What’s Happening With Crypto Mining in Russia? admin, November 1, 2024 Key Aspects of Russia’s New Crypto Mining Laws Feature Description Definition and Registration Defines terms like mining and mining pools; requires mining businesses to register. Foreign Entity Restrictions Prohibits foreign organizations from conducting mining operations in Russia. Regional Power Control Allows restrictions on mining in areas with potential energy shortages. Digital Currency Circulation Establishes circulation rules, effective March 2025. Legal Uncertainty Leaves questions around specific tax rates, electricity charges, and selling mined assets. While the laws outline responsibilities for businesses and government, they don’t set clear standards for tax or energy usage. Analyst Nikita Zuborev from BestChange noted that the framework mostly aims at making industrial mining easier to monitor rather than fully legalizingHe pointed out that tax rates and energy caps will be defined later by ministries. This is leaving industry players with unresolved questions. Attorney Maria Agranovskaya observed that before these laws, Russian mining firms operated legally but without a set regulatory framework. The new measures clarify the activity’s legal status, but without defined tax obligations or electricity limits, much remains vague. Miner operations, now officially acknowledged, are still not entirely transparent. Another lawyer, Anna Maximenko from KKMP Legal, added that prior to the legislation, Russia’s miners were operating in a “gray area.” With the new laws, mining companies now have guidelines for compliance, even though the regulations aren’t fully detailed. The government also prevents entities involved in power production and distribution from mining, aiming to separate energy management and mining activities. Additionally, Russian authorities have made it illegal for foreign nationals or foreign-controlled entities to mine within the country. This includes a ban on crypto advertisements, though people can still buy, store, and sell cryptocurrencies using local wallets and exchanges. However, no exchanges are currently registered within Russia. Selling Mined Coins: A Gray Zone The new regulations don’t clarify how miners can legally sell their coins. While transactions aren’t expressly prohibited, they aren’t formally permitted either. Maximenko believes that this aspect may be addressed in future regulations, though for now, miners have limited options for selling. Overall, while Russia’s new laws bring structure to the mining industry, many aspects are still unclear. Miners await further details on taxes, energy rates, and legal methods for selling mined assets, leaving the sector cautiously optimistic but uncertain. Source link Crypto News