When Crypto Miners Play Hide and Seek with the Russian Tax Service 🕵️‍♂️💰

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Amidst the bustling corridors of the Russian Ministry of Finance, a revelation as dark as a moonless night was made: only one-third of crypto mining firms have seen the light of legality, despite the new law demanding their registration with the Federal Tax Service (FTS). The rest, it seems, prefer the shadows. 🌑

On a Thursday, as the sun dipped below the horizon, TASS, Russia’s state news agency, whispered the tale of crypto miners who, like elusive phantoms, continue to operate without the FTS’s blessing. Deputy Minister of Finance Ivan Chebeskov, a man with a face as stern as a winter’s frost, announced that a mere 30% of miners have registered since the law’s inception in November 2024. 📜

For those who have forgotten, the Russian government, in a moment of legislative clarity, approved a law in August of the previous year to legalize crypto mining. This law, which came into effect on November 1, 2024, was designed to combat the clandestine activities of miners and to bestow exclusive rights upon those who deigned to register with the FTS. By December 2024, over 100 mining companies had mustered the courage to file their applications. 📝

Bitcoinist, a publication with a nose for news, reported that FTS’s Head Daniil Yegorov, a man with a penchant for precision, revealed that 150 firms had applied for registration just one month after the law’s enactment. However, he found the number wanting and anticipated a surge in applications in the months to come. 📈

Seven months later, the numbers remain as stubborn as a mule, with only one-third of mining entities having applied to register. “Another two-thirds need to come clean and enter the register,” Chebeskov declared at the 28th St. Petersburg International Economic Forum (SPIEF), his voice a blend of frustration and determination. “The goal was to legalize the mining sector and bring this industry out of the shadows as much as possible. We have not achieved our objective, and the Ministry will work to complete it.” 🏛️

We have not yet completed this process. So far, only 30% of all miners have been entered into the register maintained by the Federal Tax Service, and this process is still far from complete (…) Therefore, we will work to complete this process.

Notably, the Ministry of Digital Development, a department known for its forward-thinking, is reportedly toiling away on a new article for the Code of Administrative Offenses (CoAO) to impose fines for illegal mining and the failure to provide information about mined crypto. The amendment, currently under interdepartmental review, could introduce four types of offenses, three of which will be related to crypto mining. 📜💰

Moreover, judges, those arbiters of justice, would gain the authority to confiscate crypto assets from anyone mining illegally, a move aimed at halting unregistered operations in Russia. The amendment would also address crypto payments, imposing fines on those who dare to transact outside the Central Bank’s Sandbox. 🛑

In April, Russian Finance Minister Anton Siluanov, a man with a vision as clear as a summer’s day, announced a plan to establish a dedicated exchange for “highly qualified investors” alongside the Bank of Russia (BOR). The aim? To “legalize crypto assets and bring crypto operations out of the shadows.” 🌞

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2025-06-20 13:14