☑️ Who is Allowed to Engage in Mining:
Depending on the energy consumption, mining can be carried out by individuals, sole proprietors (IP), and legal entities.
Mining is prohibited in the following cases:
Depending on the energy consumption, mining can be carried out by individuals, sole proprietors (IP), and legal entities.
- For small electricity consumption (up to 6,000 kWh per month), anyone, including individuals, can mine. However, if the consumption exceeds the limit, only legal entities and sole proprietors (IP) are allowed to mine.
Mining is prohibited in the following cases:
- Having an unexpunged or outstanding criminal record for specific offenses (primarily related to crimes against state authority).
- Simultaneously engaging in electricity generation or transmission activities.
- Links to extremist or terrorist activities.
- Failure to meet business reputation requirements.
☑️ Mandatory Declaration of Information:
All participants in mining must now provide information to the Federal Tax Service (FNS).
All participants in mining must now provide information to the Federal Tax Service (FNS).
- The amount of information required depends on the status of the miner: whether they are an organization, sole proprietor, or a data center (operator of mining infrastructure).
- Data centers (DCs) are operators who lease out premises and equipment for mining: they must inform tax authorities about the individuals using their equipment for mining.
☑️ Taxation of Mining:
Miners are now prohibited from using special tax regimes such as the Simplified Tax System (STS), Unified Agricultural Tax (EAS), and others.
Miners are now prohibited from using special tax regimes such as the Simplified Tax System (STS), Unified Agricultural Tax (EAS), and others.
- A two-stage taxation process is now established. Income is recognized as it is earned (created) from cryptocurrency, based on its market value. At this stage, miners first pay taxes (PIT or corporate income tax, depending on the chosen business model).
- Subsequently, income from the sale of cryptocurrency is also taxed.
- Taxes are not paid on the entire market value of the cryptocurrency: several expenses can be deducted, including costs for electricity, equipment purchase, rent, and maintenance.
☑️ Organizing Mining Pools:
The law introduces the concept of a "mining pool" and legalizes their activities. Miners are allowed to group together and share their equipment to mine cryptocurrency.
The law introduces the concept of a "mining pool" and legalizes their activities. Miners are allowed to group together and share their equipment to mine cryptocurrency.
- The law requires mining pool founders to register and disclose information about all miners who have joined the pool.
- As a result, there are often difficulties with user verification by mining pool organizers.
These changes to Russian mining legislation are designed to create a more structured and regulated environment for cryptocurrency mining, emphasizing transparency, tax obligations, and legal compliance. Miners must stay informed and ensure their activities meet the new regulatory requirements.