Crypto Miners Rush To Register as Russia Launches New Tax Registry, 150 Registrations in November

• 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.

About the Author

Eddie Mitchell

Eddie has been writing news and content primarily for crypto news and industry players over the past seven years. With an eye for the bigger picture, Eddie prefers to investigate the broader implications of a story, as well as explore the weird and wonderful world of crypto. He believes blockchain has already changed the world, but observes the space overall with a skeptical and adoring eye.

See more

[email protected]