Russian lawmakers have passed a landmark crypto tax bill requiring industrial Bitcoin miners to pay taxes on their revenues. The legislation, which has advanced through the State Duma and awaits approval by the Senate and President Vladimir Putin, marks a pivotal step in regulating cryptocurrency mining in the country.
Tax Rates for Crypto Miners
The new bill mandates a flat tax rate of 13% on miners earning up to 2.4 million rubles ($21,210) annually. For higher revenues, a 15% rate will apply. However, miners are exempt from value-added tax (VAT) on token mining and sales conducted through crypto exchanges. Non-compliance with reporting obligations to the Federal Tax Service (FTS) could lead to fines of up to 40,000 rubles ($354).
For the first time, crypto assets are recognized as “property” under Russian law. This legal clarity addresses past challenges in court cases where the classification of blockchain-powered tokens was uncertain. The move is expected to provide a more structured framework for the growing crypto industry in Russia.
Surge in Mining Hardware Demand
Since the announcement of the bill, demand for crypto mining hardware has soared. Reports reveal that weekly purchases of mining rigs increased from 30 to 600 units within months. The sharp rise in demand has driven hardware prices up by 10%-15%. Mining firms cite Russia’s profitability in Bitcoin mining, particularly in regions like Irkutsk, as a key factor driving the surge.
Energy Concerns and Regional Impact
The rapid growth of crypto mining has prompted energy-related restrictions in some regions. The government has temporarily banned mining in areas experiencing winter energy shortages. Irkutsk, Russia’s Bitcoin mining hub, has also faced challenges due to illegal mining activities straining the local power grid.
With the rapid rollout of crypto legislation, over 150 companies have already applied for mining permits. As the bill nears final approval, Russia continues to solidify its position as a key player in the global crypto mining industry, balancing growth with regulatory oversight.
