Russia mandates crypto miners report earnings monthly

Russia is tightening its control over cryptocurrency mining, requiring miners to report their earnings by the 20th of the following month.

This new regulation aims to enhance oversight and restrict mining activities to approved entities, while excluding those involved in financial crimes.

The Federal Tax Service (FNS) announced on February 3 that taxpayers involved in digital currency mining can now declare their cryptocurrency earnings through their personal accounts.

This development aligns with Federal Law No. 259-FZ, which establishes the legal framework for cryptocurrency mining and taxation in Russia.

The FNS stated that taxpayers engaged in digital currency mining must report their mined currency to the authorised body no later than the 20th day of the month following the month in which the digital currency was received.

This new feature allows both individuals and businesses to file reports more efficiently, ensuring compliance with established regulations.

Individual entrepreneurs and legal entities can send information about mined currency to the tax authority if they are included in the Register of Miners and Operators.

Oversight of the Register of Persons Mining Digital Currency falls under the FNS, following procedures outlined in Decree No. 1464, issued by the Russian government on Oct. 31, 2024.

The register includes individuals officially registered as sole proprietors and legal entities operating within Russia’s legal framework, including participants in mining pools.

However, individuals with unexpunged convictions for financial crimes or major offenses, those listed under anti-money laundering and counter-terrorism regulations, and entities failing to meet business integrity standards are barred from engaging in digital currency mining.

By enforcing these limitations, authorities aim to curb illegal financial activities within the cryptocurrency sector while ensuring that only eligible participants can legally mine digital currency.

Russia introduced a 15% tax on Bitcoin mining profits in November 2024, marking the sector as a regulated economic contributor.