Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent news from the Russian government where they are introducing an electricity usage cap for private crypto mining.
Private Crypto Mining Electricity Cap
The Russian government has introduced new regulations which will limit the amount of electricity which can be consumed for home-based cryptocurrency miners. This new limit will be set at 6,000kWh per month. Miners who exceed this new limit will now require an individual entrepreneurial licence to continue their operations legally. This is part of new measures from two new crypto mining laws that came into effect on the 1st of November. These laws recognise mining as a legitimate enterprise in Russia and requires miners to adhere to these new usage caps.
Any miners who go above the electricity threshold will now require additional compliance measures, Those miners will be required to register with Federal Tax Service and submit details about mined cryptocurrencies. This will mean the disclosure of wallet address details. Government agencies, including the anti-money laundering agency Rosfinmonitoring, will be given access to this information. The data from the disclosures will remain confidential and only available to officials.
These new laws will also restrict participation based on specific criteria. Areas with local mining bans, individuals who have declared bankruptcy, or those previously violating anti-money laundering regulations will be barred from registering. Many of the large-scale Russian miners who focus on Bitcoin will have little to worry about regarding these new regulations, it is the home-based operators who often mine Ethereum that are at risk.
Given that Moscow will now have the power to block miners from joining certain mining pools, the landscape for cryptocurrency mining in Russia is changing. The Deputy Chairman of the State Duma’s Committee on Information Policy, Information Technology, and Communications, Anton Gorelkin, is quoted as saying that “access to” a central registry of miners “will be exclusively official.” It contradicts previous statements from ministers who claimed that much of the data in the register would be made public and people in Russia will be concerned over this lack of clarity.
The bills are known as the Duma mining bills, and Gorelkin is one of the co-authors. Gorelkin claims the government would ban the “publication of information” from the registry, while he has also previously stated that this would help miners and Russian firms who use crypto as a payment tool avoid Western sanctions. Along with the anti-money laundering body Rosfinmonitoring having access to the miners' wallet addresses, other bodies such as the Federal Security Service (FSB) and the Federal Property Management Agency will also have access. So too will the prosecution and police agency. Miners who provide “false” information or violate anti-money laundering laws will be barred from the register.
Have a great day.
Peace. CryptoGod-1.
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