Russia Outlines New Tax Framework for Cryptocurrency Income and Mining
The Russian government has unveiled proposed amendments aimed at regulating the taxation of cryptocurrency transactions and mining activities, signaling a more structured approach to the burgeoning crypto sector.
As reported by Interfax, the Finance Ministry plans to classify cryptocurrencies as property for tax purposes, introducing a top tax rate of 15% on income derived from these activities. This measure aims to create a balanced taxation framework while recognizing the unique characteristics of digital assets.
Under the proposed rules, miners will calculate taxable income based on the market value of cryptocurrency at the time of receipt. They will also be allowed to deduct operational costs, offering a more business-friendly approach to mining taxation.
The legislation extends to crypto trading as well, treating income from such transactions similarly to securities. These activities will not be subject to value-added tax, simplifying compliance for traders.
To bolster regulatory oversight, mining operators must report details about users of their infrastructure. This initiative aligns with the government’s efforts to balance state oversight with the operational needs of businesses in the crypto industry.
Notably, the journey toward comprehensive crypto regulation began with the introduction of the original taxation bill in December 2020, followed by its initial reading in 2021. The Federal Tax Service recently added another layer of complexity by proposing taxes on unrealized mining gains, reflecting the evolving regulatory landscape.
Additionally, restrictions have been imposed on unregistered individuals, limiting their Bitcoin mining activities to 6,000 kilowatt-hours of electricity consumption per month—a move aimed at curbing illegal mining operations.
These developments underscore Russia's dual focus on fostering innovation in the crypto space while maintaining a robust regulatory framework to safeguard governmental interests.