Home News Russian court bans Import of Cryprocurrency Mining Hardware

Russian court bans Import of Cryprocurrency Mining Hardware

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A court in Tobolsk, a city in the Western part of Russia has officially banned the import of equipment used in mining cryptocurrencies. The mining hardware can be used to mine Bitcoin, Monero and Ethereum.

The ban was made official when a local residence of Tobolsk purchased mining equipment from an online store. He was informed by the customs office that in order for his import to be successful, he was required to provide additional permits, which included information about a notification or conclusion issued by Federal Security Services of Russia.

In Tobolsk, trade barriers outside legal realm of tariffs apply to mining equipment hence the local miner was experiencing trouble under the law. This is because non-tariff regulations of the Eurasian Economic Commission are trade limitations. These tend to limit exports or imports of merchandise other than tariffs. Therefore, the customs department declared that the mining equipment was subject to non-tariff regulations.

The miner said that the equipment was meant for personal use, for mathematical and scientific calculations and not for commercial use. The mining hardware is used to process difficult mathematical operations which allow networks in the crypto space to confirm and validate transactions.

The miner appealed to the Tobolsk city court, which after examining the evidence provided said it cannot accept the extraction of cryptocurrency, even when it was a by-product of the scientific process. The reason for this was the statutory restrictions on imports do not depend on the purposes declared by the miner when he decided to import the equipment.

The court declared that the decision reached by the Tobolsk customs post of the Tyumen customs office to deny the import of import of the cryptocurrency mining hardware to be lawful.

It is important to note that other countries such as India, Vietnam and Venezuela have also banned import of crypto mining hardware. Miners in Vietnam country need to mine using GPU or CPU power. The ban in Vietnam was proposed a week ago by the Vietnam Ministry of Finance. This temporary ban was proposed because according to the ministry, it is difficult to regulate the new cryptocurrencies and forms of payments in tokens which are created by the mining hardware.

The court case is a new development in the cryptocurrency market and in Russia. This case can be used to influence other scenarios in the country, prohibiting miners from importing mining equipment for commercial and personal use.

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