What Can Go Wrong When Launching Mining Operations Within a Company
2025-04-23 17:29
In theory, a company with power generation, excess capacity, and its own infrastructure should be able to launch mining operations without issues.
In practice, even with an in-house legal department, this can lead to conflicts with counterparties, frozen bank accounts, and tax claims.
Let's break down the common mistakes:
1. Incorrectly Chosen OKVED Code and Taxation Model There is currently no dedicated OKVED code specifically for mining. Companies often select IT-related codes, assuming this will suffice. However, tax authorities and banks are now closely monitoring mining activities — especially when large sums are involved.
📌 Risk: bank account freezes, service refusals, additional tax assessments.
2. Unregulated Relations With Land or Site Owners Installing equipment on leased premises without adapted contracts can lead to claims from landlords — especially if electricity consumption spikes suddenly.
📌 Risk: demands to dismantle equipment, financial losses, lawsuits.
3. Electricity Is Available, but Not Permitted for Mining Use Even if the company has its own generation capacity, network restrictions, supply modes, and relationships with electricity providers must be considered. Simple "redirection of surplus power" is not always legally acceptable.
📌 Risk: violations of supply regulations, fines, inability to legalize the operation.
4. Lack of a Clear Legal Model In practice, mining often involves opaque setups: one party buys the equipment, another owns the site, and a third handles maintenance. Without properly formalized legal relationships, this leads to internal conflicts and complications during audits or inspections.
📌 Risk: partner disputes, inability to defend ownership rights or profit shares.
5. Errors in Tax and Accounting Models Mining has a unique legal nature: it's not classic manufacturing, trading, or IT. A separate tax framework is needed. This often leads to mistakes in income recognition, tax accounting, and uncertainty on how to report cryptocurrency proceeds.