In a recent development, Russia’s Ministry of Energy has declared its intention to initiate a universal registry for equipment used in cryptocurrency mining. This move, as reported by state-owned TASS news agency, will necessitate mandatory registration of all cryptocurrency mining ventures in the country.
As per the TASS report, if the initiative comes into effect, any attempt to mine cryptocurrencies without registering the equipment in the system will be deemed “impossible”. The Deputy Minister of Energy, Yevgeny Grabchak, is spearheading this endeavor as part of amendments to existing mining regulations. The primary objective is to enhance transparency and identification of domestic mining operations, particularly those conducted in regions where mining is currently prohibited.
In a crackdown on illegal mining operations, Russian authorities imposed bans on cryptocurrency mining in six regions last November, including certain Ukrainian territories under occupation. The prohibitions, which are set to be in effect from December 2024 through March 2031, were reportedly enacted in response to power shortages.
In a related development, the Federal Taxation Service (FNS) of Russia announced today that cryptocurrency miners can now declare their digital currency earnings via their online FNS accounts. This feature becomes available after users provide a qualified electronic signature. The FNS portal is equipped with separate tax reporting forms for individuals, legal entities, and individual entrepreneurs, as per TASS.
On November 29, 2024, Russian President Vladimir Putin approved a taxation framework for cryptocurrency mining and transactions. Effective from the beginning of this year, this framework stipulates that miners earning up to 2.4 million rubles ($23,976) in cryptocurrency income will be taxed at 13%. Miners earning above this threshold will be taxed at 15% of their income, as per the Digital Watch Observatory. The miners are required to submit monthly reports, with a deadline of the 20th of the following month, according to TASS.
Disclaimer: This article is intended to provide information only and is not meant to serve as legal, tax, investment, financial, or other advice.
