Following the enactment of the new crypto-related laws on November 1, the Russian government announced that over 150 firms have already applied for a crypto-mining license, with more expected to come as the process is “only beginning.”
Crypto Miners Registration Just Started
In August, the Russian government approved a new legislation to legalize crypto mining in the country. The bill, implemented on November 1, aimed to combat illegal mining activity and offer exclusive rights to registered entities.
Now that it’s been formerly enacted, the permit register is available, and firms have rushed to file their crypto mining applications. According to the Russian Federal Tax Service (FTS) head, Daniil Yegorov, around 150 firms have applied for the permit in the last 22 days.
In an interview with RBC, Yegorov revealed that the tax authority considers the current application number low and expects significantly more applicants, arguing that the process “is only beginning.”
The FTS head highlighted that the process has gone “quite smoothly” but admitted the financial authority has plenty of work ahead. Yegorov also underscored the need to introduce crypto regulations “very, very carefully, slowly, step by step,” as it is a complex sector affected by several factors:
To me, it’s even good. It is a complex subject, and there are multiple developments at once. Registration of conditional processing data centers and registration of the miners themselves.
Russia’s Electrical Crisis To Affect Miners Operations
The country’s ongoing electrical problem affects the newly implemented legislation and crypto miners’ operations. Yegorov addressed this issue in the interview, asserting that they need to learn how to work electricity management with the Ministry of Energy.
“There is a question of interaction with the Ministry of Energy regarding energy management. This is a separate matter that we need to learn how to work: where mining is allowed, where it is not allowed, where the power system is overloaded. Somewhere, miners work on gas completely. They are connected and generate electricity through gas.”
It’s worth noting that, alongside the legalization of crypto mining, the Russian government enacted another crypto mining-related law on November 1. As Bitcoinist reported, President Vladimir Putin approved a law that allowed the government to ban crypto mining at a state level.
As a result, Deputy Minister of Energy Evgeny Grabchak announced that all crypto-mining operations would be banned in some regions starting this month, citing the electrical shortages in areas like the Far East and Southwest Siberia.
Recently, reports revealed that the Russian government has formally restricted mining operations in low-energy regions to prevent power shortages during the winter. The seasonal ban includes multiple areas in the Siberian regions, which became mining hubs for their affordable electricity and proximity to hydropower plants.
In late October, Grabchak detailed that the ongoing electrical crisis in these areas makes offering large power capacities nearly impossible until 2030. The Ministry of Energy’s official numbers estimate that crypto mining consumes around 16 billion kilowatt-hours annually, equivalent to 1.5% of Russia’s total electricity consumption.
