A draft law “On Mining in the Russian Federation” has been submitted to the State Duma of the Russian Federation, regulating the field of cryptocurrency mining.

In the explanatory note to the document, it is stated that the lack of regulation regarding the sector has led to the issuance and transactions of cryptocurrencies in the “grey” zone.

The bill defines mining as an activity that uses Russian information infrastructure facilities and equipment located on the territory of the Russian Federation.

The document also includes the concepts of regulating the circulation of digital currencies, a mining pool and a mining operator.

The bill provides for the creation of a special register by the “competent federal body”. Both individuals and mining operators can mine cryptocurrencies if they are included in the registry.

Individuals must also register as sole proprietors or self-employed if their electricity consumption exceeds government limits.

If the law is passed, an amnesty is granted to enrollment participants within one year from the date of its entry into force for:

• customs clearance of imported equipment before the law came into force;
• filling out declarations of income from mining and informing tax authorities about mined cryptocurrencies;
• payment of value added tax on activities carried out for mining prior to the enactment of the law;
• Compliance with the legislation on currency regulation and control, as well as measures on the control of withdrawals from the Russian Federation, effective from March 8, 2022.

Recall that the definition of mining and the basic mechanisms for its regulation are described in the draft law of the Ministry of Finance “On digital currency”, which has not yet been adopted.

Recently, the ministry changed the regulations regarding cryptocurrency mining in the document. It also enables the creation of a registry for miners.

The Ministry of Energy of the Russian Federation supported the legalization of mining and proposed the introduction of regional quotas. Anatoly Aksakov, chairman of the financial market committee of the State Duma, believes that such activities in Russia should be allowed only for legal entities.