- Russia will tax crypto mining and transactions at 15%, classifying crypto as property for tax purposes.
- Miners can deduct operational costs but must report activities to tax authorities.
- New energy limits for home-based miners and registration requirements for industrial miners.
Russia has introduced a 15% income tax on cryptocurrency mining and trading, marking a significant shift in its regulatory approach. Under the proposed changes, crypto will be categorized as property for tax purposes.
Miners will be taxed based on the market value of the digital assets they receive. Miners can also offset costs like energy and hardware against their taxable income, while mining operators will be obligated to report their users to tax authorities.
Russia’s 15% Crypto Tax Targets Miners and Traders, Boosts Regulation
Under the new framework, miners will be taxed on the value of cryptocurrencies at the time they receive them, with a provision allowing them to deduct mining-related expenses. This includes costs associated with electricity, hardware, and maintenance, which could help mitigate the financial burden on miners operating in a competitive market.
The government also plans to limit the amount of electricity home-based miners can use. Those who exceed the limit of 6,000 kilowatt-hours per year will be subject to stricter regulations. In contrast, large-scale industrial miners must register with the Federal Tax Service, offering the government more control over the sector and ensuring transparency in mining operations.
The expected revenue from these new taxes is projected to be significant, with estimates suggesting that industrial-scale mining could bring in approximately $700 million annually. This move is seen as part of Russia’s broader effort to formalize and regulate the cryptocurrency industry, addressing both economic and environmental concerns tied to crypto mining.
Russia’s new crypto tax policy aims to formalize the sector, create new revenue streams, and ensure more oversight over mining activities, marking a major shift in how the country handles digital currencies.
“Miners will be taxed on the market value of the assets they receive, and operators must report users to tax authorities, ensuring transparency and fairness.” – Ministry of Finance of Russia.
