The Russian government has approved sweeping amendments to the cryptocurrency tax framework. This move takes place in the context of this country to balance the interests between Miners, businesses and state agencies.
These changes reflect growing efforts to regulate the growing digital currency sector while addressing economic and infrastructure challenges.
Key Changes in Cryptocurrency Taxation in Russia
According to the amended bill, cryptocurrencies will be classified as property for tax purposes. Income from mining activities will be taxed based on the market value at the time of receipt. Notably, miners can deduct expenses incurred during the mining process, bringing some relief to this capital-intensive industry.
The government has also clarified that cryptocurrency transactions will be exempt from value-added tax (VAT). Instead, income from these transactions will be included in the same tax base as stocks. This would limit personal income tax on cryptocurrency-related income to 15%.
“Following discussions with the business, a decision was made on the possibility of imposing a tax on the financial results from mining as the fairest reflection of these operating results. This approach aims to maintain a balance between business and state interests,” Interfax reportciting the Ministry of Finance.
This amendment comes as the government is tightening control. This was clearly seen when President Vladimir Putin recently signed a law transferring supervision of the cryptocurrency mining register to the Federal Tax Service (FNS).
Industrial miners are now required to register with FNS, while individual miners working from home remain exempt if their energy consumption is below regulatory thresholds.
As of November 1, cryptocurrency mining is limited to businesses and registered investors. Individual miners face monthly electricity consumption limited to 6K kilowatt-hours (kWh), underscoring the country’s efforts to manage the energy demands of cryptocurrency mining.
FNS has also proposed a controversial two-stage tax system that would include a tax on unrealized gains — cryptocurrency that miners have not sold. While the move is intended to ensure tax compliance, it could complicate miners’ operations, especially amid a market downturn.
Beyond the taxation aspect, Russia is facing a challenge related to the energy demands of cryptocurrency mining. From December 2024 to March 2025, energy-stressed areas will be subject to a temporary mining ban. Many regions such as Irkutsk, Chechnya, and the Donetsk People’s Republic (DPR) are among them.
A Computational Step Towards Regulation
These measures, prompted by concerns about subsidized electricity and regional shortages, highlight the government’s struggle to strike a balance between the economic benefits of cryptocurrency and its energy needs.
“The Russian Ministry of Energy is cracking down on mining platforms in energy-stressed areas such as Irkutsk, Chechnya and the DPR. Reason? Subsidized electricity + limited supply = confused priorities. The conclusion is obvious: energy ≠ infinite, and miners may need to be more resourceful or resourceful,” comment Mario Nawfal on X.
Amid these regulatory developments, Sberbank, Russia’s largest bank, Notification a pilot program for cryptocurrency-based transactions. This initiative complements the ongoing digital ruble trial and discussions about issuing state-backed stablecoins. These efforts signal Russia’s larger strategy to integrate digital currencies into its financial system.
Russia’s cryptocurrency tax journey began in 2020 when the government first introduced the bill. Approved on first reading in 2021, the bill has experienced some delays amid controversy over balancing innovation with regulation. Now, with these amendments, Russia positions itself as one of the key countries on the global cryptocurrency playing field.
Experts believe that these measures are intended to attract institutional investors and invest in a stable crypto environment, even as the country is facing sanctions and economic isolation . By taxing cryptocurrency-related income and enforcing energy restrictions, Russia seems determined to strike a balance between growth and governance.
Yet, while the new regulations provide much-needed clarity, challenges remain. The two-stage tax system and energy restrictions could make things difficult for small-scale miners, who may struggle to maintain profits under the new framework. However, larger institutional mining operations may find opportunities in this regulated environment.
As Russia tightens control over the cryptocurrency sector, the question is whether these measures will promote innovation and stability or stifle development.
