Mining is the process of creating new blocks on a blockchain network by solving complex mathematical puzzles. Mining requires a lot of electricity, as well as vast amounts of computing power that can perform the tasks required for the system. In the world of cryptocurrencies, mining secures transactions and adds new blocks to transaction chains.

Miners use specialized software and hardware to perform calculations and validate the transactions. For their work, miners are rewarded in the form of cryptocurrency, accordingly, all miners use this activity as a source of income.

Difficulties of running a mining business in the Russian Federation

Many cryptocurrency-friendly jurisdictions have introduced licensing of mining activities and special tariffing of electricity payments, due to high consumption level.  Russian legislation does not currently define the concept of mining and its regulation.

According to the Russian law, such activities may fall under the definition of entrepreneurial activity, accordingly, the project must be registered as a legal entity or IE. Within the Russian legal framework, there is no clear fixing of how to keep accounting records and how to pay taxes from mining activities.

Accordingly, there are many legal risks involved in profiting from the sale of mined cryptocurrency. Our company develops and supports the implementation of the legal structure and contract fastening, which will help to minimize all possible risks, including those related to the payment of taxes.

How can we help?

Our company can fully support this procedure:

  • It will provide advice on how to organize the activity, what legal entities will be required, in which jurisdictions, as well as prepare a written document (conclusion) with a detailed plan of action, which will serve you as a desk book on the organization of your mining business.
  • It will help you to register the necessary legal entities.
  • It will prepare contracts to formalize relationships between the group companies and third parties (data center, hosting provider, equipment supplier, and others).
  • It will negotiate with outside parties to secure your interests.
  • If necessary, it will prepare all necessary clarification documents for the government agencies to ensure the legality of your activities.

We specialize in providing legal support for cryptocurrency companies in Russia. We provide professional support at all stages of the project launch, ensuring full compliance with the laws and removing possible obstacles.

By addressing us, you get not only expert assistance in drawing up all the necessary documents, but also advice on optimizing business processes in the field of mining. With us, your mining business can be not only legal but also successful, thanks to our professional approach and experience in legal support of cryptocurrency projects.