Russia has recently implemented new regulations on crypto mining, including a ban on mining activities in ten specific regions for a period of six years. This ban is aimed at managing energy consumption and will be in effect from January 1, 2025, until March 15, 2031.
Russia still allows Bitcoin and other cryptocurrency mining under strict tax compliance conditions. The government has established a framework for regulated mining activities, with the requirement that miners adhere to the new guidelines outlined in recent legislation.
In addition to the long-term ban, Russia will also impose seasonal restrictions on crypto mining in certain regions during peak energy consumption periods. These temporary restrictions will be in effect from January 1 to March 15 in 2025, with plans to extend the ban to a longer duration from November 15 to March 15 in subsequent years. The list of regions subject to these restrictions may change based on ongoing assessments of electric power development challenges.
The legalization of crypto mining in Russia has introduced a new regulatory landscape for miners, with only registered entities being permitted to engage in mining activities. This measure aims to combat illicit practices such as money laundering and terrorist financing. Miners are now required to report their revenue and digital currency holdings to the country's financial monitoring body, ensuring greater transparency in the sector. The Federal Tax Service has also established a mandatory registration system for individual entrepreneurs and legal entities involved in crypto mining. This system requires miners to provide detailed information about their assets and wallet addresses.
The recent legislation also includes provisions for taxing mining activities based on their market value at the time of receipt. These regulatory changes will have significant implications for the crypto mining industry in Russia, potentially impacting major mining companies that rely on cheap electricity in certain regions. However, the government's aim is to create a balanced framework that addresses energy consumption while fostering a legitimate and sustainable mining sector.