Russia has approved a new amendment to a draft bill which will add taxes for crypto transactions and mining activities. The new legislation will classify cryptocurrencies as property for tax purposes, meaning income generated from Bitcoin mining and trading will be subject to taxation. However, crypto transactions will be exempt from value-added tax and will fall under the same tax bracket as personal income from securities, which is typically taxed at no more than 15%.
For mining activities, taxes will be based on the market value of assets at the time they are received, and miners will be allowed to deduct mining expenses from their taxable income. The Russian Ministry of Finance explained that this approach balances the interests of the state and businesses. This new legislation is part of Russia’s ongoing efforts to regulate the crypto industry and comes in addition to an energy usage limit for Bitcoin miners that restricts unregistered individuals to 6,000 kilowatt-hours of power.
Authorities also plan to limit crypto mining in certain regions due to ongoing energy shortages.