Russia Introduces Crypto Mining Registry and Tax Framework

Russia's Crypto Mining Registry Initiative

Russia's Ministry of Energy has announced plans to establish a comprehensive registry for crypto mining equipment. This system will require all miners to register their hardware, effectively making unregistered mining operations impossible. Deputy Minister of Energy Yevgeny Grabchak is spearheading the initiative, which includes proposed amendments to current mining regulations. The primary goal is to enhance monitoring of mining activities, particularly in regions where such operations are prohibited.

Regional Bans on Crypto Mining

In November 2024, Russian authorities banned crypto mining in six regions, including certain occupied Ukrainian territories. These bans, effective from December 2024 to March 2031, aim to address power shortages in these areas. The restrictions highlight Russia's efforts to regulate mining activities and ensure energy resources are allocated efficiently.

Tax Reporting for Crypto Miners

The Federal Taxation Service (FNS) has introduced a new system allowing crypto miners to report their digital currency earnings through their online FNS accounts. This feature becomes available once users submit a qualified electronic signature. The FNS has developed separate tax reporting forms for individuals, legal entities, and individual entrepreneurs to simplify compliance.

Crypto Mining Tax Framework

A tax framework for crypto mining and transactions, signed by President Vladimir Putin on November 29, 2024, came into effect this year. Under this framework, miners earning up to 2.4 million rubles (approximately $23,976) are subject to a 13% tax rate, while those earning above this threshold face a 15% tax rate. Miners are required to submit monthly reports on their cryptocurrency earnings by the 20th of the following month.

These developments underscore Russia's efforts to regulate and monitor crypto mining activities, ensuring compliance with new legal and tax requirements.