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A senior lawmaker in Moscow has stated that the number of Russian cryptocurrency mining companies registered with the Federal Tax Service has increased tenfold over the last six months.
The Russian news outlet RBC reported that members of parliament assert that over 1,000 companies are now “legally” engaged in mining cryptocurrencies.
This development has prompted one political figure to assert that cryptocurrency represents the “future” for numerous Russian enterprises.
Increase in Russian Crypto Mining Companies
The leader of the New People Party, lawmaker Alexey Nechaev, addressed participants at a State Duma plenary session on July 23:
“When crypto mining was first emerging [in Russia], there were many who sought to prohibit it. However, it is now evident that the future lies with cryptoassets. Mining will continue to evolve.”
The total Bitcoin hashrate over the past 12 months. (Source: Blockchain.com)
He also confirmed that according to FTS data, the number of “white” miners in Russia has surged tenfold since the beginning of the year.
A new law enacted in Russia last year mandates that all crypto miners consuming more than 6,000 kWh of electricity monthly must register with the authority.
Regulation Over Bans, MP Asserts
The FTS requires companies on its roster to submit information regarding the quantity of coins they mine and the wallets in which they store their cryptocurrencies.
The tax authority will also begin to mandate that firms on the list pay taxes on their profits. Industry leaders have suggested that this could generate over $500 million annually for the Russian Treasury.
Nechayev commended his fellow lawmakers for passing the mining legislation in the fall of 2024. He remarked that MPs had acted wisely by opting to regulate rather than prohibit mining. The lawmaker elaborated:
“Pushing individuals into the shadows with fines and prohibitions is not an effective approach.”
Nechayev noted that before the implementation of the new law, miners were compelled to operate in a grey, quasi-legal environment.
The Russian lawmaker Alexey Nechaev. (Source: duma.gov.ru [CC BY 4.0])
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Some miners, he pointed out, had attempted to be transparent about their operations but were unable to pay taxes as most of their businesses were not officially recognized.
Nechayev mentioned that this situation had previously resulted in “entire cities and districts” experiencing power shortages due to miners overloading the electrical grids.
Miners: Investing in AI
Before the law was enacted, only 91 companies with crypto mining activities were able to register their operations. This number has now risen to over 1,000, according to Nechayev.
Turkish Foreign Minister Fidan speaks after Russia and Ukraine peace talks https://t.co/f4gqZC5IJc
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The New People leader added that industrial miners are also channeling investments into AI. He stated that this year alone, crypto miners have allocated 5 billion rubles ($63 million) towards AI development.
Nechayev asserted that miners are now more inclined to invest their funds domestically rather than transferring them abroad.
Moreover, he concluded that many mining-related power outages have ceased.
World’s Second Largest Bitcoin Miner?
The Association of Industrial Miners, the largest industry group in the domestic mining sector, claims that Russia is now consistently ranked second globally in Bitcoin (BTC) mining volume.
According to the association, outputs are only surpassed by those of the USA. Additionally, mining continues to progress, the organization noted.
This summer, Russian crypto mining companies reported that their hashrate exceeded 150 EH/s (exahash per second), representing 16.6% of the global hashrate.
Domestic analysts estimate that approximately BTC 40,000 (around $4.7 billion) was mined in Russia throughout 2024.
Earlier this month, a prominent Russian policymaker urged the government to begin confiscating cryptocurrency from illegal miners.
He indicated that a move towards officially recognizing cryptocurrencies as a form of intangible property would facilitate courts in seizing assets from unlawful miners.
The post Russia Reports x10 Rise In Registered Crypto Mining Firms appeared first on Cryptonews.
