Russian data centers and hosting providers are obligated to use services with state tax authorities to share all relevant information about crypto miners.
A new order arises from the revenue agency as the Russian government prepares to limit the use of computing power and electrical energy in the minting of digital currency.
Mining infrastructure operators are entrusted with reporting on miners
All operators of data processing hardware and infrastructure provided to others and organizations for the purpose of mining Russian cryptocurrency must forward detailed information about their clients to the Federal Tax Services (FNS).
The new report, along with certain data points, was approved by the tax office in an order that came into effect on July 30th.
“FNS knows almost everything about miners, from electricity bills to equipment models and their operating hours.”
Russia recognized the minting of digital coins like Bitcoin as a legal business activity in 2024. Since November, businesses and individual entrepreneurs have been allowed to mine as long as they register with FNS.
Registration is not an obligation for civilians who consume less than 6,000 kWh of electricity per month to power their mining rigs. Data centers and hosting providers are listed in separate registers under “mining infrastructure operators”.
When registering with tax authorities, miners provide independent information about their activities and equipment. The latest FNS order amending national tax rules establishes procedures for collecting similar data from companies that lend space and hardware to miners.
These include data centers and mining farm operators, mining hosting services, and platforms that provide computing power to third parties. Failure to submit the necessary information completely and on time will result in a fine or dismissal.
Russian tax services want to know everything about miners
The details requested by the Russian state are very comprehensive. Mining hotels are expected to notify tax personnel about the electricity bills they have set for their clients. The report also lists the total amount of electricity consumed at each tax rate.
The hosting provider must indicate the manufacturer, model and factory number of the mining unit that each user is employed. Mining algorithms, maximum computing power, energy ratings, and opening hours must also be listed in the new form.
Bitcoin Farm Operators must use the Services to report the corporate and entrepreneurial company and tax registration numbers, as well as the full name and passport details of individuals between the clients.
Each client must submit information about what cryptocurrencies they mined and what volumes and what cryptocurrencies they had. If miners use mining pools, the latter must be identified. FNS also requests a link to the page, allowing you to monitor the operation of the mining machine in real time.
Legalization has sparked a mining boom in Russia, but authorities are concerned about a small number of registered miners, estimated to be less than a third of mining companies. The increase in energy shortages in parts of the country was another source of concern addressed by restrictions on activity in around 12 energy-deficient regions.
At the beginning of July, President Vladimir Putin justified the measure, emphasizing that there should be a balanced approach for Russia to exploit its resources. Soon after that, a legislative amendment was underway in the Russian parliament, banning crypto mining in data centers. The move is expected to save the computing power of other applications, such as big data processing and artificial intelligence (AI) development.