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A Russian ministry is preparing a bill for the regulation of cryptocurrency mining which reportedly consists of a “special machine” to detect crypto miners. further, there can be a 2-12 months tax destroy for miners in addition to strength quotas and unique tariffs.

## System to Detect Miners ##

The Russian Ministry of Communications and Mass Media is reportedly growing a system to become aware of cryptocurrency miners in Russia so that they may be taxed, Vedomosti mentioned last week. The publication elaborated:

in line with the book, two people acquainted with the problem have showed that this data is protected within the mining law organized with the aid of the Ministry of Communications. The bill is expected to be submitted to the state Duma by using February 1.

This is not the primary time Russia has explored ways to become aware of miners. In October, the chairman of the state Duma Committee on financial Markets, Anatoly Aksakov, referred to the opportunity of the usage of electricity intake to tune crypto miners.

## The Feasibility of This tracking approach ##

The Ministry of electricity believes that “technically, that is feasible, however it's miles necessary to understand that such tactics and activities ought to be economically feasible,” Ria Novosti suggested. “possibly it's far profitable to monitor simplest the big nodes that offer this hobby on an business scale,” the ministry defined.

specialists informed the news outlet that “the primary question is how the government will locate the customers’ money owed that earn cryptocurrencies, and now not individuals who watch television or warmth residences,” 

“Detection of miners by using the profile of their energy intake and net site visitors can be very tough to comprehend,” defined Andrei Koptelov, director of the middle for monetary studies at the Synergy university. “it's miles simply impossible to differentiate among what consumes strength, a mining farm or family heater, and the means of private virtual networks can help you encrypt site visitors.”

## Tax Holidays, Energy Quotas, and Special Tariffs ##

at the same time as emphasizing that crypto mining might be taxed, RBC reported that the Ministry of communique is thinking about special benefits for miners

however, Deputy Finance Minister Alexei Moiseev informed reporters final week that his ministry “does now not see the need for tax holidays for miners,” Ria Novosti stated.

further, the Ministry of Communications additionally plans to provide miners “energy quotas and a special tariff,” the news outlet exact.

A representative of the Ministry of energy attended the assembly held by using the Ministry of Communications to discuss Russia’s mining law closing week. “to this point no one has been capable of give an explanation for why” there must be unique tariffs for miners, the power ministry said. “inside the Russian Federation, presently the existing price lists are many of the lowest in the international, which already makes computing facilities in Russia quite appealing,” the ministry’s press provider asserted.