Legalising crypto mining on self-generated power and entering the FTS register

The task

The client, a company leasing industrial premises, had bought a gas-piston power plant and a batch of mining hardware for a new line of business. The plan looked simple — generate its own electricity and mine digital currency on it. Legally, matters were more complicated. The law prohibits combining the production and sale of electricity with mining within one organisation (amendments made by Federal Law No. 221-FZ of 8 August 2024 to the electricity legislation), and the landlord had no right simply to “sell” electricity to its tenant: electricity supply is a tightly regulated activity. Launching “as is” would have breached two sectoral regimes at once.

What we did

• Carried out a comprehensive legal audit of the project at the junction of two regulatory regimes — electricity and digital currency mining — including regional mining bans and restrictions.
• Developed a step-by-step action plan: how to separate power generation from mining legally, so as not to breach the ban on combining the two activities within one company.
• Restructured the contractual arrangements for supplying electricity to the leased premises — without an unlawful resale of electricity by the landlord.
• Prepared the documents and supported the client through entry in the register of miners kept by the Federal Tax Service (Federal Law No. 221-FZ of 8 August 2024).
• Set up the tax framework: accounting for the mined digital currency and reporting under Federal Law No. 418-FZ of 29 November 2024 (Article 282.3 of the Tax Code).

The result

The client has been entered in the FTS register of miners and mines within the law: the structure of the project complies with the ban on combining generation and mining, the electricity supply is lawfully documented, and tax accounting for the mined currency is in place. We do not disclose the client's name or details — they are protected by a confidentiality agreement.

This description reflects the result in a particular matter on particular facts. A result in one case neither guarantees nor implies a similar result in another.