The Worry of Miners in Russia

Bitcoin miners in Russia are concerned about potential sanctions as the government begins collecting wallet addresses and other sensitive data through a national registry.

This registry, operational since November 2024, aims to monitor and regulate crypto activities.

Miners fear that if this data leaks, it could expose them to sanctions, which would be damaging given the current geopolitical tensions.

Meanwhile, Russia is using Bitcoin for international transactions to evade Western sanctions imposed due to its actions in Ukraine.

The U.S. has already sanctioned some Russian mining companies like Bitriver.

The new registry for crypto mining equipment in Russia will significantly impact the industry by introducing stricter regulations and oversight.

Miners must register their equipment, making unregistered operations illegal. This helps monitor activities and prevent unauthorized energy use.

Miners are required by the new tax framework to report earnings online, with tax rates of 13% for earnings up to 2.4 million rubles and 15% above that.

Regulations aim to limit mining in energy-restricted regions, addressing power shortages caused by unregulated mining.

Russia's approach could set a precedent for other countries considering stricter mining regulations.

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