Russia Proposes 15% Tax on Crypto Income to Regulate Sector

As a seasoned crypto investor with roots deeply embedded in the Russian soil, I find myself navigating the intricate web of regulatory changes that the government is weaving around our beloved digital assets. With a lifetime of observing the ebb and flow of financial policies in this vast land, I can’t help but feel a sense of cautious optimism about these new proposals.


Russia intends to manage its expanding cryptocurrency market by suggesting a 15% tax on income generated through cryptocurrency transactions. The Ministry of Finance has proposed this draft amendment as a means to create a more transparent system for taxing mining activities and transactions within the crypto sector.

According to the Interfax report, if the proposed changes are implemented, people who mine cryptocurrency will pay taxes based on the market value of the tokens they receive. Additionally, these individuals can claim deductions for expenses related to their mining operations, which should make the tax calculation more fair and balanced.

For taxation purposes, cryptocurrencies will be considered as assets, and Value Added Tax (VAT) will no longer apply to crypto transactions. Instead, the revenue generated from these transactions will be subject to taxation in a manner comparable to that of securities.

The draft amendment also introduces new rules for crypto mining operators. These operators will need to notify tax authorities about individuals using their facilities for mining. However, the specifics of the data to be disclosed are still unclear.

Beyond the tax plan, Russia is taking steps to manage its energy-related issues. As of November 1, only miners who are officially registered can legally operate, and individual miners are restricted to using a maximum of 6,000 kWh per month. To alleviate electricity shortages, temporary mining bans may be implemented in certain regions from December 1, 2024, through March 15, 2025.

Russia is not only working towards regulating cryptocurrencies, but it’s also advancing its digital currency projects. For instance, Sberbank has unveiled a trial run for transactions using crypto, hinting at Russia’s ambition to incorporate digital currencies within their financial infrastructure.

Read More

2024-11-19 10:46