Russia has recently implemented a new law that requires cryptocurrency miners to report their earnings by the 20th of the following month. This move is aimed at tightening oversight and restricting mining activities to approved entities, while also prohibiting individuals with a history of financial crimes from participating.
The Federal Tax Service (FNS) of Russia announced on February 3rd that taxpayers involved in cryptocurrency mining can now declare their earnings through their personal accounts. This aligns with Federal Law No. 259-FZ, which establishes the legal framework for cryptocurrency mining and taxation in the country. According to a statement from the FNS:
“Taxpayers who are engaged in digital currency mining must report their mined currency to the authorized body no later than the 20th day of the month following the month in which they received the digital currency.”
Authorities have emphasized that this new reporting function enables individuals and businesses to comply with regulations more efficiently. To utilize this feature, taxpayers can log into their personal accounts using a qualified electronic signature. These accounts, integrated into the FNS’s digital services, serve as online platforms where both individuals and corporate taxpayers can manage tax-related matters, file necessary declarations, and fulfill tax obligations.
Additionally, the FNS clarified:
“At the same time, individual entrepreneurs and legal entities included in the Register of Miners and Operators will be able to provide information about the currency they have mined to the tax authority.”
The oversight of the Register of Persons Mining Digital Currency is under the FNS, in accordance with the procedures outlined in Decree No. 1464 issued by the Russian government on October 31, 2024. This register includes individuals registered as sole proprietors and legal entities operating within Russia’s legal framework, including participants in mining pools. However, certain groups are prohibited from engaging in cryptocurrency mining. This includes individuals with unexpunged convictions for financial crimes or major offenses, those listed under anti-money laundering and counter-terrorism regulations, and entities that fail to meet the business integrity standards set by Federal Law No. 259-FZ. By implementing these limitations, authorities aim to combat illegal financial activities in the cryptocurrency sector and ensure that only eligible participants can legally mine digital currency.
