Russia Targets Crypto Income with New Tax Amendments

Russia is advancing its approach to cryptocurrency regulation with newly proposed amendments aimed at taxation.

These changes, spearheaded by the Finance Ministry, outline specific rules for crypto mining and trading activities, emphasizing clarity and oversight in the sector.

The plan introduces a redefinition of crypto assets as taxable property, with earnings from mining assessed based on their market value when acquired. To support the mining industry, operational expenses can be deducted from taxable income, offering some relief to businesses in the sector.

Another notable aspect is the removal of value-added tax (VAT) on digital asset transactions. Meanwhile, profits from trading will face taxation comparable to that of traditional securities, capped at 15% for personal income. Mining operators will also need to provide detailed reports on user activity within their infrastructure to ensure transparency.

The Finance Ministry highlighted that these updates are intended to balance the needs of businesses and the state, aiming for a fair and structured approach to taxing digital financial activity.

This initiative follows a series of recent efforts by the Russian government to address the growing role of cryptocurrencies. Earlier measures include limiting electricity use for unauthorized miners and proposals to tax unrealized gains, reflecting a broader strategy to bring the sector under regulatory oversight.

Alexander Stefanov