The Russian government is implementing new restrictions on cryptocurrency mining, particularly in regions of Ukraine occupied by Russia. From December 2024, a complete ban on cryptocurrency mining will come into force in Donetsk, Luhansk, Zaporizhia, and Kherson regions to address energy supply problems.
Siberia is also subject to seasonal restrictions, suspending mining from mid-November to mid-March each year, effective December 2024 and lasting until 2031. These measures will impact regions such as Irkutsk and Chechnya. The new regulations aim to protect local energy systems and ensure stable operation.
Russia has also introduced changes in the regulation of cryptocurrencies, such as direct control over mining pools while supporting cryptocurrency use as a means of payment. The tax policy now considers cryptocurrencies as assets, with mining revenues taxed at market value but mining costs being deductible.
Personal income tax on cryptocurrency income is up to 15%, while cryptocurrency transactions are exempt from VAT. Russia’s plans include creating national cryptocurrency exchanges in Moscow and St. Petersburg, aiming to strengthen Russia’s role in the global cryptocurrency market and provide central control and regulation over domestic transactions.
