Russia Developing Crypto-Miners Detector - MnTrendsNews

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Monday, 29 January 2018

Russia Developing Crypto-Miners Detector



A Russian Ministry has been entrusted with the responsibility of preparing the regulation for cryptocurrency in the Russian Federation. This reportedly includes a system to detect cryptocurrency miners. There might also be a 2 year tax break for miners, energy quotas and special tariffs.

The Ministry of Russian Communications and Mass Media is reported to be developing a system by which cryptocurrency miners in Russia can be identified and taxed, Vedomosti reported last week. It stated;
There will be a special system for detecting miners – according to the structure of current consumption and Internet traffic, to correlate the capacity of the mining equipment with the amount of cryptocurrency that the miner declares on the crypto exchange.

According to Vedomosti, 2 people who are familiar with the information and even that of prepration of mining regulation by the Ministry of Media and Communications.
The bill expected to be presented to the State Duma by February 1.

This isn't the first attempt by Russia to identify Cryptominers in the country. In October, Anatoly Aksakov, the Chairman of State Duma Committee on Finncial markets suggested a possibility of using Electricity consumption to track cryptocurrency miners.

On the feasibility of this system, The Ministry of Energy says “technically, this is possible, but it is necessary to understand that such processes and activities should be economically feasible,” Ria Novosti reported. “Perhaps it is worthwhile to monitor only the large nodes that provide this activity on an industrial scale,” the ministry explained.

Experts have also expressed fears on the system saying;“The main question is how the authorities will detect the consumers’ accounts that earn cryptocurrencies, and not those who watch TV or heat apartments,” adding that:

It is extremely difficult to track whether a consumer in his apartment is crypto [mining] or downloading a series of films.
“Detection of miners by the profile of their power consumption and Internet traffic will be very difficult to realize,” explained Andrei Koptelov, director of the Center for Economic Research at the Synergy University. “It is virtually impossible to distinguish between what consumes electricity, a mining farm or household heater, and the means of private virtual networks allow you to encrypt traffic.”

On Tax Holidays for Cryptominers, RBC reported that the Ministry of Communications is considering if miners will be granted special benefits, saying;
For starters, the miners will be given two years of tax holidays with compulsory accounting. Then they will be obliged to pay profit [income] tax, but they will not pay VAT.
 
But the Deputy Finance Minister, Alexei Moiseev has said he doesn't see any need for tax holidays for cryptocurrency Miners.

SEE ALSO:RUSSIA'S MINISTER BACKS CRYPTO-SELF REGULATION

What are your thoughts on the cryptocurrency miners’ detection? Do you think it is feasible for Russia? Should cryptocurrency miners be given tax holidays considering the amount of power the sap from the National grid? Please share your thoughts in the comments section below, and subscribe to our newsletter and please, like our Facebook page; Mntrends Blog

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