In the Russian south of the Dagestan Republic, a new wave of mining has already started, and some are even organizing mining in legally prohibited areas. MayorsIn the Russian south of the Dagestan Republic, a new wave of mining has already started, and some are even organizing mining in legally prohibited areas. Mayors  Read More crypto mining

The problem observed in Dagestan raises a similar question across Russia about the highly energy-consuming nature of digital currency mining. Instead, the Russian government, led by President Vladimir Putin, has implemented legal measures for cryptocurrency mining. 

Currently, effective from November 1, 2024, this new law prescribes the creation of a particular register by the finance ministry for entities engaged in crypto mining. In addition, those participating in this kind of activity will need to provide some information to the financial monitoring regulator of Russia, which will increase the sector’s transparency.

This legislative move is in line with other efforts aimed at tackling unlawful mineral extraction exercises that do not observe legal procedures in electricity consumption and do not pay taxes. 

Through the regulation of the industry, the government seeks to reduce the negative effects on the nation’s power supplies and ensure that crypto mining adds value to the nation’s structure without harming the people or wasting their resources.