Russia to Mandate Registration of Crypto Mining Equipment, Introduces Tax Reporting for Miners

Russia is tightening its grip on the cryptocurrency mining industry with plans to create a mandatory registry for all mining equipment. This move, announced by the Ministry of Energy, aims to enhance oversight of domestic mining activities and comes alongside the introduction of a new tax reporting system for crypto miners.

Mandatory Registration: A New Era for Russian Crypto Miners

According to a report from state-owned news agency TASS, Deputy Minister of Energy Yevgeny Grabchak is spearheading proposed amendments to existing mining regulations. The central element of these amendments is the establishment of a unified registry for all crypto mining equipment. The report suggests that operating unregistered mining equipment could become "impossible" if the plan is implemented.

Tax Reporting Goes Digital: Streamlining the Process for Miners

Simultaneously, Russia's Federal Taxation Service (FNS) has launched a new feature allowing crypto miners to report their digital currency earnings through their online FNS accounts. This function, accessible after submitting a qualified electronic signature, offers separate tax reporting forms for individuals, legal entities, and individual entrepreneurs.

From Zero to Taxed: Russia's Evolving Crypto Framework

These developments follow the approval of a tax framework for crypto mining and transactions by Russian President Vladimir Putin in November 2024. The framework, which took effect at the start of this year, imposes a 13% tax on crypto income up to 2.4 million rubles ($23,976) and a 15% tax on income exceeding that threshold.

Monthly Reporting: New Obligations for Miners

Miners are now required to submit monthly reports on their mined cryptocurrency, with a deadline of the 20th of the following month. This new reporting requirement, along with the proposed equipment registry, reflects Russia's increasing efforts to regulate and monitor the crypto mining sector.