Russia is taking steps to regulate its growing cryptocurrency sector by proposing a 15% tax on earnings from crypto transactions. This draft amendment, introduced by the Ministry of Finance, aims to provide a clearer framework for the taxation of crypto miners and transactions.
Under the proposed changes, individuals earning crypto through mining will be taxed at the market value of the tokens when received. They will also be able to deduct expenses related to mining operations, which should help balance the tax calculation, according to the Interfax report.
Cryptocurrencies will be treated as property for tax purposes, and value-added tax (VAT) on crypto transactions will be eliminated. Instead, income from these transactions will be taxed similarly to securities.
The draft amendment also introduces new rules for crypto mining operators. These operators will need to notify tax authorities about individuals using their facilities for mining. However, the specifics of the data to be disclosed are still unclear.
In addition to the tax proposal, Russia is addressing its energy concerns. Starting November 1, only registered miners can operate legally, while individual miners are limited to using 6,000 kWh per month. To tackle electricity shortages, temporary mining bans will be imposed from December 1, 2024, to March 15, 2025, in some regions.
As Russia moves toward regulating crypto, it’s also expanding digital currency initiatives. Sberbank recently announced a pilot program for crypto-powered settlements, signaling Russia’s push to integrate digital currencies into its financial system.
Also Read: Italy Considers Reducing Crypto Tax Hike from 42% to 28%
