Key Takeaways
- Russia is steadily regulating its domestic crypto industry.
- Crypto mining in Russia drew $195 million in 2023.
- Russia is reportedly ranked second globally for crypto mining power.
Russia’s tax ministry has reported a flurry of applications to register under its newly-implemented crypto mining laws, revealing a potentially diverse and competitive crypto industry in waiting.
Crypto Mining Russia
Now that Russia has formerly legalized crypto mining, its Federal Tax Service (FTS) has said that since mining rules came into effect on Nov. 1, it has received roughly 150 applications to join the crypto mining register.
Speaking with local media, FTS head Daniil Yegorov explained that there’s still some way to go, so it is necessary to implement regulations “very, very carefully, slowly, step by step.”
Notably, there are some exemptions. Entrepreneurs, businesses, and other legal entities will need to register. However, “private” miners, namely those who don’t exceed a certain energy threshold, won’t need to.
In 2023, Russia reportedly pulled more than 20 billion rubles from crypto mining, which is roughly $195 million. Also that year, Russia reportedly ranked second to the U.S. in computer power dedicated to mining.
Slow and Steady
The Russian government, for one reason or another, is moving swiftly ahead with regulating cryptocurrency technologies.
Interestingly, it has set a 15% tax cap on income generated from crypto and exempts crypto transactions from value-added tax (VAT).
This latest sweep of applications from miners suggests there is an industry in waiting, one that could be incredibly competitive if not lucrative. There are still plenty of energy-related provisions to consider due to domestic mining operations causing regional power outages.
FTS head Yegerov explained that there is work to do with the Ministry of Energy to better manage resources, namely where and when mining can be allowed and how it can be done without overloading the system.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
