Russian Court Prohibits Import of Crypto Mining Equipment

Russian Court Prohibits Import of Crypto Mining Equipment

Tobolsk has officially banned the import of equipment for cryptocurrency mining, as per the media sources.

Tobolsk is a town in Western Russia located in Siberia. The ban was made official when a local miner attempted to import the equipment suited for the mining of cryptocurrency for his individual use.

The Russian city court in the town enforced this when the resident, who tried importing crypto mining equipment purchased online for a personal purpose, entered into a heated argument and trouble with the customs office.

Federal Customs Office of Russia declared that the resident of Tobolsk purchased the equipment for some personal use from an online site.

The personal use technically means use for scientific and mathematical calculations involved in the cryptocurrency mining. Following the trouble with customs office, an appeal was filed. The Court supported the decision of Customs office and thus prohibited the import of the mining equipment.

As per the Customs Department of Russia, “measures of non-tariff regulation are applicable for this type of commodity.”

Non-tariff regulations of the Eurasian Economic Commission are trade limitations which tend to limit exports or imports of merchandise or companies other than tariffs. Customs Department meant that Mining equipment is subject to non-tariff regulations.

In order to clear the import, certain documents are required. This includes the need to provide additional permits like conclusion issued by the Federal Security Service of Russia or information about the notification. However, the Customs Department notified that it did not receive any such documents hence the approval was refused.

The Court further added that the decision of Tobolsk customs office is completely lawful and it is right in refusing the import of the concerned equipment for the purpose of mining. The miner who moved the customs office to Court also argued that the equipment will be just used to solve the equations and extraction of cryptocurrency is just a byproduct of the scientific process.

The court was not convinced as the statutory restrictions imposed on imports do not depend on such purposes that importer declares at the time of import.

What are your views on this decision?

You can also read the report here.

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Aayushi Dhawan
Aayushi Dhawan is an avid reader, researcher, crypto writer and a passionate student. While pursuing her graduation in commerce at SRCC, she realized that writing and Finance give her immense pleasure. She is currently pursuing her post graduation in Commerce (Finance) from Department of Commerce, Delhi School of Economics and keeps on exploring the intricacies of research, her biggest strength.