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Russian State Duma Deputy Anton Gorelkin stated that the draft law concerning penalties for illegal mining, which includes up to five years of imprisonment and asset confiscation, lacks incentives for the legalization of the industry.
Gorelkin referred to the explanatory note accompanying the draft law, which indicates that approximately 50,000 miners operate in Russia, yet only about 3% of them are registered in the Federal Tax Service (FTS) registry.
“Evidently, the authors of the draft law expect to encourage the registration of miners through punitive measures,” the deputy remarked.
He pointed out that mechanisms for legalizing equipment imported through “gray schemes” had been previously discussed, but a corresponding decision has yet to be made:
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“Subscribers are asking: where is the incentive? Before the introduction of penalties, the market was promised mechanisms for legalizing mining equipment that was brought into the Russian Federation via ‘gray schemes’ and thus cannot be officially registered. Unfortunately, the necessary legal framework has not yet been established.”
According to the deputy, several regulatory initiatives were considered, but none received approval from the relevant authorities. At the same time, he suggested that the significance of the issue may have diminished due to a reduction in the share of “gray” equipment.
Gorelkin also mentioned that the FTS plans to conduct a survey among industry participants to determine what barriers prevent miners from operating legally and entering the registry.
As of November 1, 2024, a law regulating cryptocurrency mining will be in effect in Russia. Mining is permitted for legal entities and individual entrepreneurs included in a special registry, as well as for individuals, provided they adhere to an energy consumption limit of no more than 6,000 kWh per month. Market participants are required to report their wallet information and transactions to government authorities.
Previously, Anton Gorelkin stated that despite the legalization of mining, the industry continues to maintain a negative image in society.
