On November 27, the Russian Federation Council approved a bill establishing a taxation framework for cryptocurrency transactions, including an exemption from value-added tax (VAT) for mined coins. This development coincides with Bitcoin reaching record highs against the Russian ruble.
According to the new legislation, digital currencies are formally classified as property, and a personal income tax rate of 13% to 15% is established on cryptocurrency sales. The VAT exemption for miners reflects a policy designed to promote domestic mining activities alongside the implementation of regulated frameworks.
The bill introduces mandatory reporting requirements for cryptocurrency miners. Mining infrastructure operators must submit activity reports to local authorities to comply with the new tax regime. Non-compliance could result in penalties of up to 40,000 rubles (approximately $360). Services provided by authorized mining infrastructure operators will not be taxed within the Russian Federation.
After passing three readings in the State Duma, the bill received Federation Council approval and was signed into law by President Vladimir Putin, according to TASS. The law will take effect upon its official publication, establishing a legal framework for digital currency transactions in Russia.
Reuters reports that cryptocurrency mining in Russia consumes about 16 billion kilowatt-hours annually, accounting for approximately 1.5% of the country’s total electricity usage.
Triple A reports indicate that approximately 17 million Russians, representing 11.9% of the country’s population, own cryptocurrencies.
