Russia Approves New Tax Bill for Crypto Mining and Trading

Russia has moved forward with a new tax framework for cryptocurrency, focusing on both mining and trading.

The Federation Council, the upper house of parliament, recently approved a bill that classifies cryptocurrencies as property under the country’s tax code. This new legislation introduces a tax on cryptocurrency transactions and mining but notably exempts these activities from value-added tax (VAT).

As part of the bill, mining companies will be obligated to report user data to authorities, and the income generated from mining will be taxed as personal income at a rate of 13%. Starting in 2025, those with mining earnings exceeding 2.4 million rubles (around $28,800) will face a tax rate increase to 15%.

The legislation has already passed both the upper and lower houses of parliament and is expected to be signed into law by President Vladimir Putin.

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In addition to these tax changes, Russia has also indicated plans to restrict cryptocurrency mining in certain areas, particularly in the regions affected by the ongoing conflict with Ukraine. The government aims to prevent power shortages during the upcoming winter season by curbing mining activities in these regions.

Kosta Gushterov