Original Article Title: Is Mining Legal? Global Regulatory Overview

Original Article Author: Dr. Crypto Speaks

Cryptocurrency Mining and Regulation: Why Is It Important to Pay Attention?

Cryptocurrency mining validates blockchain transactions through computational power, ensures network security, and earns cryptocurrency rewards. From home GPUs to large-scale mining farms, mining scales vary, but issues such as high energy consumption and noise have attracted global regulatory scrutiny. By 2025, the regulatory landscape is complex and constantly changing: some countries (such as Texas, USA) support mining for economic growth, while others (such as Iran) have fully banned it due to environmental and financial risks.

>  Everyday Metaphor

Mining is like extracting gold from mines, with the allure of producing gold (cryptocurrency); however, the "mining site" must comply with local laws, such as obtaining environmental permits and controlling noise, or they may face fines or shutdowns.

>  Regulatory Focus

Energy Consumption: Bitcoin consumes a significant amount of electricity, leading to environmental controversies.

Noise Pollution: The noise from large mining farms disturbs the peace, leading to community complaints.

Financial Compliance: Taxation, Anti-Money Laundering (AML), and transparency requirements are becoming increasingly stringent.

Current Legal Status of Global Mining

Internationally, the legal status of mining is not uniform. Some countries see it as an opportunity for economic innovation, actively developing policies to attract miners, while others choose to restrict or prohibit it due to energy pressures, financial risks, or environmental concerns.

United States: Mining is not federally banned, but there are significant state-level differences. Texas has become a mining hub due to low electricity prices and open policies, while New York has implemented transitional restrictions on mining that uses fossil fuels. Arkansas passed a dedicated law in 2023 to protect miners' rights, but in 2024, added noise and permitting requirements and restricted entry for some foreign companies.

Europe: At the EU level, there is particular concern about the energy consumption of mining, with a suggestion for member states to gradually reduce related electricity use and eliminate tax incentives for miners.

Canada: Leveraging its hydropower resources, Canada has become one of the ideal mining locations. However, some provinces have set electricity quotas and price controls to prevent impacts on residential electricity consumption.

Russia: In 2024, legislation was officially passed in recognition of the legality of cryptocurrency mining, establishing a licensing, taxation, and regulatory system.

Kazakhstan: Long known for its low electricity prices attracting miners, in recent years, it has been gradually refining licensing and tax policies, and setting different tax rates based on the source of electricity.

Countries like Iran, Bolivia, among others, have taken a strict restriction or complete ban approach, with reasons mainly focusing on energy shortages and financial security concerns.

Main Regulatory Focus Areas

Energy and Environment: The high energy consumption of mining has sparked global discussions, especially in regions reliant on coal power. Green energy mining is encouraged, while high-carbon energy mining faces strict restrictions.

Noise and Community Impact: The noise generated by large mining facilities has even become the catalyst for resident lawsuits, with some state governments requiring mines to use noise reduction equipment.

Licensing and Compliance: Many countries require miners to obtain operating licenses, adhere to regulations on electricity usage, safety practices, tax reporting, and more.

Taxation Policies: Different jurisdictions show significant differences in how mining income is treated. The U.S. regards mining proceeds as income subject to income tax, with capital gains tax implications upon sale; Kazakhstan adopts a progressive tax system linked to electricity prices; Canada provides tax incentives for green mining.

>  Legal and Compliance Issues for Home Miners

While regulations are mostly focused on large-scale facilities, home miners also need to be aware of local regulations. In some areas, excessive electricity usage may lead to higher electricity prices or violations of residential area rules. Additionally, noise, heat, and electrical safety issues can easily trigger neighborhood disputes. Compliance practices include: monitoring energy consumption reasonably, improving cooling and soundproofing, and obtaining equipment and software through official channels.

Mining Income Taxation

The tax policies on cryptocurrency mining rewards vary by country:

United States: Rewards are treated as income and taxed at fair value (30%+), with capital gains tax upon sale (15-20%).

Canada: Green mining receives tax incentives, with a 10% income tax exemption in Quebec by 2025.

Kazakhstan: Progressive tax rates, with a $0.0024/kWh discount for green energy.

Russia: A new law effective in November 2024 requires businesses to pay taxes, with individual income disclosure.

In addition, household miners need to record their rewards. It is recommended to use third-party automated tax tracking services to avoid fines.

Regulation and Clean Energy

Using the United States as an example, most states consider mining activities as regular business operations. Miners need to apply for a business license similar to starting a company and fulfill tax obligations under federal and state laws. Income must be reported at fair market value upon receipt. In states with tight energy consumption, the government may impose additional review requirements on mining facilities, such as energy efficiency standards and emission limits.

A representative example of Russia's 2024 regulations is the new law. The law clearly states that all mining companies must obtain official licenses and be subject to dual supervision by the government and central bank.

Meanwhile, Environmental Impact Assessments (EIAs) are becoming an essential part of global mining compliance. Especially in regions highly valuing sustainable development, new mining sites often need to submit reports on energy consumption, carbon emissions, noise levels, etc., and can only start operations after independent reviews. This not only raises the industry's entry barriers but also encourages miners to actively adopt clean energy and energy-efficient equipment.

In recent years, the mining industry has been gradually transitioning to clean energy: in North America, some mines are directly connected to wind or solar farms; in Northern Europe and Siberia, miners use hydropower and natural cooling environments to reduce energy consumption; in the Middle East and Central Asia, surplus electricity from new energy sources is also introduced into mining, improving energy utilization efficiency.

Conclusion

Regulations on cryptocurrency mining in 2025 present a "multi-center" trend: some countries support and establish clear frameworks, while others choose to ban it due to energy or financial risks. The future trend may be to support green mining, strengthen energy consumption regulation, and improve licensing and tax systems.

The use of clean energy in green mining not only helps miners reduce long-term costs but also enhances the industry's image, aligning with the global trend of sustainable development. This transition is becoming a key direction for the mining industry's sustainability.

For miners, staying informed about local policies and ensuring compliance have become a prerequisite for long-term survival in this industry.

Original Article Link

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia