The Federal government of Russia, through the Ministry of Energy, is planning to create a single registry for crypto mining equipment. The registry will help the state enforce crypto operations registration and tax reporting.
TASS, a state-owned news agency, announced the government plans, highlighting that crypto mining without registered equipment would be a toll order in the country.
Deputy Minister of Energy Evgeny Grabchak is leading these calls as a part of proposed legal changes on mining policies. The registry will help to identify domestic mining activities, especially in regions where mining is prohibited.
In November 2024, the Russian government banned crypto mining in several regions, including some parts of Ukraine, where it had invaded. The ban, which commenced in December 2024, will be in effect for several years, up to March 2031. Russia said the ban was meant to address power shortages in those regions.
Russia crypto mining and transactions tax framework to begin working
Russia developed a tax frame that was approved in November 2024. Today, Russia’s Federal Taxation Service announced that the digital platform for reporting digital currency earnings is active. The platform will help miners seamlessly and directly report their crypto earnings on their online FNS accounts.
The new platform will allow users to submit an authentic electronic signature, which will trigger the platform’s tax-complying function. The FNS online platform exposes users to several tax reporting forms for individuals, legal entities, and business enterprises.
President Vladimir Putin approved a tax framework for crypto mining and transactions to take effect at the beginning of this year. The framework states that miners who earn up to $23,976 from crypto must submit 13% as a tax, and anyone earning beyond that threshold must pay 15% of the income.
Moreover, the framework directs miners to fulfill their monthly reporting requirements for their mined cryptocurrency, with a deadline of the 20th of the following month.
Russia’s tax move on crypto might improve their budget, or will it follow Kyrgyzstan’s uncertain path?
Russia’s move to enforce a tax on crypto mining might improve its revenue and ease budget pressure. However, it might also turn out like Kyrgyzstan, which at one point boosted its revenue stream with mining taxes but failed to sustain the tempo.
In 2024, Kyrgyzstan received only $4,083.40 in cryptocurrency mining tax. This was a meager collection, falling 43% short of 2023’s revenues of $7,219.14
Crypto tax revenue is not guaranteed to be consistent, as fluctuations are expected over the coming months, similar to Kyrgyzstan’s experience. The country saw a decline in revenues for most of the year, but in December, the cryptocurrency mining tax increased by $493.09.
Russia’s monthly online tax filing strategy may be critical to ensuring that most crypto traders cannot bypass the process. Besides, the registry will play an important role in ensuring that all equipment is entered into the database for easy tracking.
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