Beginner miners often join a mining pool to more quickly learn the process of cryptocurrency mining and start earning income. The new law introduced the concept of a "mining pool" and defined its regulation.
What is a mining pool?
A mining pool is a combination of mining equipment capacities owned by different individuals. The organizer of a mining pool is the entity providing services to combine these capacities and distributing the earned cryptocurrency among the participants.
A mining pool is a combination of mining equipment capacities owned by different individuals. The organizer of a mining pool is the entity providing services to combine these capacities and distributing the earned cryptocurrency among the participants.
How do mining pools work?
In a classic mining pool, there is a coordinator who ensures the stable operation of all participants and the fair distribution of rewards.
In a classic mining pool, there is a coordinator who ensures the stable operation of all participants and the fair distribution of rewards.
There are different payment schemes:
☑ Pay-Per-Share (PPS) – the miner receives a fixed payment for their share (hashrate), regardless of whether a block is found. The coordinator assumes the risks and usually takes a commission.
☑ Pay-Per-Last-N-Shares (PPLNS) – the reward is paid only when a block is found and distributed proportionally to each miner's contribution.
☑ Pay-Per-Share (PPS) – the miner receives a fixed payment for their share (hashrate), regardless of whether a block is found. The coordinator assumes the risks and usually takes a commission.
☑ Pay-Per-Last-N-Shares (PPLNS) – the reward is paid only when a block is found and distributed proportionally to each miner's contribution.
Registration of mining pool operators
The organizer of a mining pool must be registered with the Federal Tax Service (FTS) as a mining infrastructure operator. This is done through the "MiningRegistry" service on the FTS website.
The organizer of a mining pool must be registered with the Federal Tax Service (FTS) as a mining infrastructure operator. This is done through the "MiningRegistry" service on the FTS website.
For registration, the following is required:
☑ An application with a contract with the energy supply organization attached.
☑ Documents confirming the presence of higher education.
☑ Documents regarding employment activities (for legal entities).
☑ A contract between the operator and the miners (when submitting data about the miners).
☑ An application with a contract with the energy supply organization attached.
☑ Documents confirming the presence of higher education.
☑ Documents regarding employment activities (for legal entities).
☑ A contract between the operator and the miners (when submitting data about the miners).
Restrictions and obligations
☑ Organizers of mining pools must meet the requirements for business reputation.
☑ Individuals with an unsatisfied or unexpired criminal record for certain offenses are not allowed.
☑ The organizer can be an individual entrepreneur, legal entity, or even an individual.
☑ Operators must provide tax authorities with mining data no later than the 25th day of the month following the reporting quarter.
☑ Pool participants must register themselves and declare their income.
☑ Organizers of mining pools must meet the requirements for business reputation.
☑ Individuals with an unsatisfied or unexpired criminal record for certain offenses are not allowed.
☑ The organizer can be an individual entrepreneur, legal entity, or even an individual.
☑ Operators must provide tax authorities with mining data no later than the 25th day of the month following the reporting quarter.
☑ Pool participants must register themselves and declare their income.
Conclusion
If all requirements are met, the operation of mining pools in Russia is legal.
If all requirements are met, the operation of mining pools in Russia is legal.