Russia now requires crypto miners to report earnings by the 20th of the following month, tightening oversight and restricting mining to approved entities while barring financial crime offenders.
Russia Demands Crypto Miners Report Earnings—New Law Reshapes Industry
Russia’s Federal Tax Service (FNS) revealed on Feb. 3 that taxpayers involved in digital currency mining now have the ability to declare their cryptocurrency earnings through their personal accounts. This development corresponds with Federal Law No. 259-FZ, which outlines the legal framework for cryptocurrency mining and taxation in the country. According to a statement translated by Google, the FNS specified:
Taxpayers who are engaged in digital currency mining must report to the authorized body on the mined currency no later than the 20th day of the month following the month in which the digital currency was received.
Authorities emphasized that this newly introduced function allows both individuals and businesses to file reports with greater efficiency, ensuring adherence to established regulations.
Taxpayers can utilize this feature by signing into their personal accounts with a qualified electronic signature. These accounts, integrated into the FNS’s suite of digital services, function as online platforms where both individual and corporate taxpayers can manage tax-related matters, file necessary declarations, and fulfill tax obligations.
Furthermore, the FNS clarified:
At the same time, individual entrepreneurs and legal entities will be able to send information about mined currency to the tax authority if they are included in the Register of Miners and Operators.
Oversight of the Register of Persons Mining Digital Currency falls under the FNS, in accordance with the procedures outlined in Decree No. 1464, issued by the Russian government on Oct. 31, 2024. This register encompasses individuals officially registered as sole proprietors and legal entities operating within Russia’s legal framework, including participants in mining pools. However, certain groups are barred from engaging in digital currency mining. These include individuals with unexpunged convictions for financial crimes or major offenses, those listed under anti-money laundering and counter-terrorism regulations, and entities failing to meet business integrity standards set by Federal Law No. 259-FZ. By enforcing these limitations, authorities seek to curb illegal financial activities within the cryptocurrency sector while ensuring that only eligible participants can legally mine digital currency.
