Russia Intensifies Crypto Mining Regulations as Tax Focus Grows

Russia’s tightening regulations on cryptocurrency mining have led to a surge in licensing applications, with the tax authorities receiving 150 submissions since November 1, 2024.

Daniil Egorov, head of the Federal Tax Service, stated that the process is just beginning, and more applications are expected. Miners using under 6,000 kWh of energy monthly are exempt from registration, but others must disclose mining assets and wallet information.

While some speculate that Russia may be following China’s lead in restricting crypto, experts believe the government’s goal is to tax the growing digital asset sector. Other countries, like India and Denmark, have also introduced high taxes on crypto.

Russia’s push to regulate mining comes amidst concerns over its energy consumption and may signal a broader shift toward crypto acceptance, similar to El Salvador’s legalization of Bitcoin.

In addition, nations like Bhutan have recently profited from Bitcoin sales, despite not recognizing cryptocurrencies as legal tender. Bhutan’s government wallet now holds over a billion dollars in crypto, bolstered by a recent market rally.