Coinpedia reports Russia is moving towards stricter regulation of cryptocurrency transactions and mining, introducing a tax framework that will take effect in January 2025.
The country, which has long maintained an ambiguous stance on digital assets, is now treating cryptocurrencies as taxable property, making it mandatory for individuals and businesses to report their earnings.
The new tax regime comes as Russia faces mounting economic pressures, including prolonged Western sanctions and inflationary challenges.
By formalising cryptocurrency taxation, the government aims to curb illicit financial flows while ensuring that the industry operates within legal boundaries.
The legislation introduces personal income tax on crypto sales, corporate tax on mining companies, and mandatory reporting for all mining activities.
These changes place Russia among the growing number of nations attempting to regulate the trillion-dollar crypto industry while still leveraging its economic potential.
The measures will significantly impact miners, traders, and businesses engaged in digital assets, with penalties for non-compliance.
Crypto to be taxed as property under Russia’s new law
Russia’s new tax regime brings digital currencies under formal property laws, aligning them with other taxable assets.
Under Federal Law No. 259-FZ, cryptocurrencies will no longer operate in a regulatory grey area but will instead be subject to detailed financial scrutiny.
From 2025, individuals who sell cryptocurrencies will be liable to pay personal income tax.
The tax structure is progressive, with a 13% levy on earnings up to 2.4 million rubles and 15% on higher amounts.
The move is aimed at increasing tax compliance while ensuring that individuals profiting from digital assets contribute to the state budget.
Meanwhile, corporate entities engaged in crypto mining will also face a 25% tax on profits, aligning them with standard business taxation policies.
This change could push some mining firms to restructure operations or relocate to regions offering more favourable tax conditions.
Stricter rules for miners and businesses
While cryptocurrency mining remains legal in Russia, the new framework introduces strict compliance requirements.
Miners must now register with authorised entities and report earnings on a monthly basis.
Failure to comply could result in fines of up to 40,000 rubles, marking a shift towards increased government oversight.
Another crucial restriction applies to mining operations in energy-scarce regions.
Authorities will prohibit mining activities in areas where power grids are at risk of being overloaded.
This measure is expected to limit unregulated mining and prevent potential disruptions to local energy supplies.
On the other hand, the government is offering relief by exempting mining activities from value-added tax (VAT), reducing the overall tax burden on businesses engaged in large-scale operations.
Russia is also looking to expand its presence in cross-border crypto transactions.
The new tax rules include provisions allowing tax-free cryptocurrency transfers under “experimental legal regimes,” designed to facilitate international digital asset payments.
By implementing these measures, Russia is attempting to strike a balance between regulating the crypto industry and maintaining its competitiveness in the global digital economy.
However, the long-term impact on investment and innovation within the sector remains uncertain.
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