Russian lawmakers have given the green light to a government-backed crypto tax bill, introducing new levies on revenues earned by industrial Bitcoin miners.
The State Duma recently voted in favor of proposed amendments to the Russian Tax Code during the bill’s second and third readings, as reported by media outlet Komsomolskaya Pravda.
Crypto Taxation Moves Toward Final Approval
The approved bill now advances to the Russian Senate before reaching President Vladimir Putin’s desk for his signature. Considering the swift actions of the State Duma, these steps are likely to be completed within days, marking a significant milestone for the country’s crypto regulation.
Under the new law, miners generating up to 2.4 million rubles ($21,210) annually will face a flat 13% tax rate on their earnings. Higher-income miners will pay a 15% tax rate, according to the bill’s provisions.
Defining Crypto as Property & Easing VAT Burdens
This legislation also breaks new legal ground by officially recognizing cryptocurrency as a form of “property” under Russian law. This recognition resolves a long-standing challenge for Russian courts, where judges previously struggled to classify blockchain-based tokens in legal disputes.
Additionally, the bill removes value-added tax (VAT) obligations for miners when producing and selling tokens on crypto exchanges. However, miners will be required to register their operations with the Federal Tax Service (FTS). Failure to comply with reporting standards could result in fines of up to 40,000 rubles ($354).
Rapid Implementation of Crypto Mining Laws
The adoption of crypto mining regulations has been progressing quickly in Russia since President Putin signed the country’s first crypto mining legalization act in August. That law took effect on November 1, alongside government decrees temporarily banning mining in certain regions during winter months due to energy shortages.
The Federal Tax Service revealed that around 150 companies have already submitted applications for operating permits, with more expected in the near future.
Spike in Mining Hardware Demand
This push for regulation has coincided with a surge in demand for crypto mining equipment across Russia. According to media outlet Lenta, mining hardware sales jumped significantly, with weekly purchases climbing from about 30 rigs during mid-2024 to as many as 600 rigs by early November.
The increased demand has driven mining equipment prices up by 10%-15%, according to Mining Group, a Moscow-based hardware firm.
Alexander Peresichan, CEO of software solutions developer Tehnobit, attributed this surge to Bitcoin mining profitability in Russia, which remains notably high despite regulatory changes.
The new tax rules and accelerated legalization efforts reflect a rapidly evolving crypto landscape in Russia. The country is seeking to harness its mining potential while formalizing and taxing the industry more effectively.
