Introduction
Oleg Ogienko, representing the working group on cryptocurrency regulations in the Russian State Duma, recently put forth an initiative during the Digital Almaz forum that could reshape the landscape for cryptocurrency miners in the country.
Proposed Amnesty Program
He is advocating for the introduction of an amnesty program tailored for miners who have been operating with equipment imported through illegal channels. The goal of this policy is to potentially convert around 60% of the nation’s unregistered miners into legitimate operators.
Current Challenges
Despite the fact that Russia legalized cryptocurrency mining earlier this year, many miners are finding it challenging to comply with the Federal Tax Service regulations due to a lack of provisions protecting them when it comes to illegally sourced equipment. As a result, only approximately 150 mining facilities and 1,300 individual mining operations are officially recognized in Russia.
Impact of Mining Activities
The concentration of mining activities in regions rich in electricity resources, particularly in Siberia, has led to significant power consumption issues, prompting bans on mining in more than ten areas this year. In response, law enforcement agencies and power suppliers have ramped up their efforts, employing advanced technology to detect and dismantle unauthorized mining setups across the country.
Conclusion
Ogienko’s proposed amnesty could serve to bring these underground operations into compliance, thus easing the pressure from law enforcement and generating additional tax revenue for the state.
