Russia Approves Changes to Crypto Taxation Bill | Airdrop Alert Pro

The Russian government has approved an overhaul of its cryptocurrency tax framework. The development comes as the country aims to balance the interests of miners, businesses and state authorities.

The changes reflect increasing efforts to regulate the growing digital currency industry while addressing economic and infrastructure challenges.

Major Cryptocurrency Tax Changes in Russia

Cryptocurrencies will now be classified as property under the revised bill tax Purpose. Income from mining activities will be taxed based on the market value of the digital currency at the time of receipt. Notably, miners can deduct fees incurred during the mining process, providing some relief to this capital-intensive industry.

The government also made it clear Cryptocurrency transactions will be exempt from value-added tax (VAT). Instead, gains from such transactions would be included in the same tax base as the securities. This would cap the personal income tax rate on cryptocurrency-related income at 15%.

“As a result of discussions with business, we have decided that a tax on the financial results of the mining industry is the fairest reflection of the results of this activity. This approach aims to maintain a balance between business and national interests,” Interfax reportciting the Ministry of Finance.

The revision comes as the government takes steps to tighten controls. Saw this with the president Vladimir Putin’s A law was recently signed that transfers supervision of the cryptocurrency mining registry to the Federal Tax Service (FNS). Industrial miners must now register with the FNS. Meanwhile, artisanal miners working from home are exempt as long as their energy consumption is below prescribed limits.

FNS also proposed a controversial two-stage tax system that would include taxing unrealized gains (cryptocurrency held by miners but not yet sold). While the move is intended to ensure tax compliance, it could complicate miners’ operations, especially during market downturns.

In addition to taxes, Russia also faces challenges with the energy needs of cryptocurrency mining. As of November 1, only registered entrepreneurs and organizations can mine cryptocurrencies. At the same time, an individual’s monthly electricity consumption must not exceed 6,000 kilowatt hours (kWh).

From December 2024 to March 2025, a temporary mining ban will be implemented in energy-stressed areas. Although there are many such regions, including Irkutsk, Chechnya and the Donetsk People’s Republic (DPR).

Well-planned regulatory push

The measures, taken out of concern over electricity subsidies and regional power shortages, highlight the government’s efforts to balance the economic benefits of cryptocurrencies with cryptocurrencies. vitality need.

“Russian Energy Ministry is restricting mining equipment in energy-stressed regions like Irkutsk, Chechnya and the Democratic Republic. The reason? Subsidized electricity + limited juice = tightrope walk of priorities. The conclusion is clear: energy ≠ unlimited, miners may need to be stealthy or turn,” commented Mario Nawfal in X.

Amid these regulatory developments, Russia’s largest bank, Sberbank Announce Cryptocurrency settlement pilot program. The initiative complements ongoing digital ruble pilots and discussions on issuing a state-backed ruble Stablecoin. The efforts are part of Russia’s broader strategy to integrate digital currencies into its financial system.

Russia’s journey to tax cryptocurrencies began in 2020 when the government first proposed the bill. The bill was approved on first reading in 2021 but faced several delays due to debates over balancing innovation and innovation. Regulation. Now, with these amendments, Russia is positioning itself as a major player in the global cryptocurrency competition, albeit with a cautious approach.

Experts believe the measures are aimed at attracting institutional investors and creating a stable cryptocurrency environment, even as the country grapples with sanctions and economic isolation. By taxing cryptocurrency-related income and imposing energy restrictions, Russia appears determined to strike a balance between growth and governance.

However, while the new regulations provide much-needed clarity, challenges remain. A two-stage tax system and energy restrictions may deter small-scale miners, who may struggle to remain profitable under the new framework. However, larger institutional mining operations may find opportunities in this regulated environment.

As Russia tightens its grip on the cryptocurrency industry, it remains to be seen whether these measures will promote innovation and stability or stifle growth.