The Russian government plans to establish a crypto mining equipment register to monitor tax reporting and operations in the sector.
Six-Year Mining Ban
The move, promoted by Deputy Energy Minister Yevgeny Grabchak, aligns with the country's broader intentions to regulate crypto mining operations, especially in regions already subjected to restrictions. The government announced a sweeping ban on crypto mining in several areas for six years, from 2025 to 2031. Introducing the equipment register in these regions is part of the government's strategy to maintain control and manage areas where mining is already prohibited.
FNS to Facilitate Online Submissions
Observers believe that besides targeting electricity consumption, the crypto mining equipment register will enable the government to include miners in its tax bracket. The Federal Tax Service announced that miners must report their earnings using the FNS online account, now offering separate forms for individual entrepreneurs, legal entities, and individuals.
Putin Signed Crypto Tax Law in 2024
Russian President Vladimir Putin approved the new tax framework for crypto mining and transactions on November 29, 2024. Under the new rules, any miner with an income of at least 2.4 million rubles will be subjected to a 13% tax, while those earning more fall under a higher threshold with a 15% levy. The law requires monthly tax reports with a 20th of the following month's deadline. According to the FNS document, miners must report their mined currency monthly.
With the introduction of the mandatory crypto mining equipment register, the government aims to enhance revenue collection and budget management. However, the new rules may negatively impact the industry, similar to what occurred in Kyrgyzstan, where miners relocated to escape high mining taxes.
