Russia's new regulation requires 'Mining' to KYC, Miners must report income on the 20th of each month

The Russian government announced on the 3rd a plan to establish a unified CryptocurrencyMining equipment registration system, and requires all encryptionMining operators to register. Once the plan is implemented, unregistered equipment will be unable to conduct Mining. According to TASS, Miners are also required to comply with monthly reporting requirements and submit Mining income reports by the 20th of the following month. (Background: Russia announced the prohibition of Mining in 10 regions until 2031, fearing the power grid will be drained) (Background: Russia legalized BTCMining, what is Putin plotting behind the embrace of Cryptocurrency?) According to the Russian official media TASS, the Russian Ministry of Energy announced on the 3rd a plan to establish a unified CryptocurrencyMining equipment registration system, and mandatory registration for all encryptionMining operators, as unregistered equipment will be unable to conduct encryptionMining once the plan is implemented. In addition, the Federal Tax Service of Russia (FNS) also revealed that the new system requires users to submit qualified electronic signatures before being able to use the registration function. Furthermore, FNS announced that encryptionMiners can now use the online FNS account to declare digital currency income, providing independent tax declaration forms for individuals, legal entities, and sole proprietors. Not only that, TASS also reported that Miners are required to comply with monthly reporting requirements and submit Mining income reports by the 20th of the following month. Russia's encryptionMining tax system is now in effect. In addition, a cryptocurrencyMining tax framework approved by President Putin on November 29th last year officially came into effect earlier this year. According to data from the Digital Watch Observatory, Miners with an annual income below 2.4 million rubles (approximately $23,976) will be taxed at a rate of 13%, while Miners exceeding this threshold will be subject to a 15% tax. According to bitcoin.com, Russia's new regulations stipulate that individuals with financial crime, anti-Money Laundering, or significant criminal records will be prohibited from engaging in CryptocurrencyMining activities. The KYC registration system established by the Ministry of Energy may effectively filter out illegal Mining participants. 10 regions are prohibited from encryptionMining until 2031. According to previous reports from CoinDesk, while encryptionMining was legalized, the Russian government also announced the prohibition of CryptocurrencyMining in 10 regions from January 1, 2025, until March 15, 2031, with the primary goal of balancing energy consumption and industrial demand. Prohibited Mining regions include: Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Donetsk, Luhansk, Zaporizhzhia, and Kherson. In addition, the Irkutsk region, the Republic of Buryatia, and parts of the Trans-Baikal region will temporarily restrict Mining activities during peak energy consumption periods (November to March of the following year). Related reports: Russian parliament proposes 'including BTC in strategic reserve assets' to counter international economic sanctions Russia announces: BTC payments for international trade now open, next step is to establish BTC reserves? Russian Federal Security Service: Citizen sentenced to 7 years for funding the Ukrainian army with Cryptocurrency. This article was first published by CoinDesk BlockTempo, the most influential Blockchain news media.