Russia has passed a law recognizing cryptocurrency as property, bringing significant changes to the regulation of this field.
How Will Cryptocurrency Mining Income Be Taxed?
According to the new law, income from mining will be classified as 'in-kind income' and subject to market-based taxation. Miners can deduct their operational expenses from taxable income. Individual miners will face a two-tier tax structure: 13% on earnings up to 2.4 million rubles and 15% on amounts exceeding this threshold. From 2025, companies involved in cryptocurrency mining will pay a corporate tax rate of 25% on profits.
What Are the Reporting Requirements for Miners?
The law establishes strict reporting duties for operators of mining infrastructure, mandating disclosure of customer information to tax authorities. Noncompliance could result in penalties of up to 40,000 rubles. Most provisions will take effect upon publication, with transitional measures anticipated. Additionally, a law was passed limiting cryptocurrency mining to registered entities.
A New Chapter for Cryptocurrency in Russia
This new legal framework marks an important milestone for Russia’s cryptocurrency sector, pushing for greater transparency and economic integration. These regulations set a precedent for the country’s approach to digital currencies.
With the introduction of this law, Russia aims to regulate the cryptocurrency sector and integrate digital assets into the country's economic framework.
