More than 5,500 new crypto miners have officially registered with Federal Tax Service of Russia following the legalization of digital asset mining on November 1, 2024.
Key Takeaways
- Over 5,500 miners have officially registered since legalization in November 2024.
- Mining is now fully taxable, with cryptocurrency treated as property.
- Individuals can mine without registration only under strict electricity limits.
- Regional bans aim to protect energy supplies in vulnerable areas.
- Draft 2026 laws could introduce criminal penalties for large-scale illegal mining.
The surge marks a decisive move by Moscow to bring what was long considered a multi-billion dollar shadow sector under formal state supervision.
The legalization framework is part of a broader strategy to regulate energy usage, collect tax revenue, and tighten control over large-scale mining operations that had previously operated in a grey zone.
Mandatory Registration and Reporting Rules
Under the new system, all legal entities and individual entrepreneurs engaged in mining must enroll in the official tax registry. Registered operators are required to submit monthly production reports through their tax accounts, detailing the amount of digital currency mined.
Private individuals can still mine without formal registration – but only if their electricity consumption stays below 6,000 kWh per month. Once that threshold is exceeded, registration becomes compulsory.
Infrastructure providers are also subject to oversight. Data center operators must register and disclose which individuals or companies are using their facilities, closing a major loophole in previous enforcement efforts.
New Tax Structure Takes Effect in 2025
Legislation signed by President Vladimir Putin classifies cryptocurrency as property for taxation purposes starting in 2025.
Mining and crypto sales are exempt from VAT. However, income generated from mining is taxable:
- Individuals pay 13% on annual income up to 2.4 million rubles and 15% on earnings above that threshold.
- Companies face a 25% corporate profit tax rate, reflecting Russia’s increased corporate tax level in 2025.
- Operational expenses such as electricity costs can be deducted from taxable income.
This structure is designed to formalize the sector without making it immediately uncompetitive compared to offshore jurisdictions.
Regional Bans and Tougher Penalties
The federal government has retained the authority to prohibit mining in energy-deficient regions. As of early 2025, restrictions have been imposed in parts of Siberia, the North Caucasus, and certain occupied territories to prevent strain on local power grids.
Non-compliance carries financial consequences. Unregistered mining or failure to submit required reports can result in fines of up to 40,000 rubles.
Looking ahead, draft legislation proposed for 2026 could significantly raise the stakes. Large-scale or organized “illegal” mining operations may face fines up to 2.5 million rubles and potential prison sentences of up to five years.
Pressure on Major Industry Players
The tighter regulatory climate is already affecting large operators. In early 2026, the Federal Tax Service initiated bankruptcy proceedings against a subsidiary of BitRiver, widely considered Russia’s largest mining firm. The move followed failed data center projects and allegations of tax evasion linked to its founder.
Russia’s latest push signals that crypto mining is no longer tolerated as an informal industry. Instead, it is being reshaped into a tightly supervised, revenue-generating sector aligned with national energy and fiscal priorities.
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