Russia now requires crypto miners to report their earnings by the 20th of the following month, in a move to tighten oversight and restrict mining to approved entities, while also barring financial crime offenders.
Russia's Federal Tax Service (FNS) announced on February 3rd that taxpayers involved in digital currency mining can now declare their cryptocurrency earnings through their personal accounts. This aligns with Federal Law No. 259-FZ, which sets out the legal framework for cryptocurrency mining and taxation in the country. According to a statement translated by Google, the FNS stated:
"Taxpayers engaged in digital currency mining must report the mined currency to the authorized body no later than the 20th day of the month following the month in which the digital currency was received."
Authorities emphasized that this new function allows both individuals and businesses to file reports more efficiently, ensuring compliance with established regulations.
Taxpayers can access this feature by logging into their personal accounts with a qualified electronic signature. These accounts, part of the FNS's suite of digital services, function as online platforms where individual and corporate taxpayers can manage tax-related matters, file necessary declarations, and fulfill tax obligations.
Furthermore, the FNS clarified:
"At the same time, individual entrepreneurs and legal entities included in the Register of Miners and Operators will be able to submit information about the mined currency to the tax authority."
Oversight of the Register of Persons Mining Digital Currency is under the purview of the FNS, in accordance with the procedures outlined in Decree No. 1464, issued by the Russian government on October 31, 2024. This register includes individuals officially registered as sole proprietors and legal entities operating within Russia's legal framework, including participants in mining pools. However, certain groups are prohibited from engaging in digital currency mining. This includes individuals with unexpunged convictions for financial crimes or major offenses, those listed under anti-money laundering and counter-terrorism regulations, and entities that fail to meet the business integrity standards set by Federal Law No. 259-FZ. By enforcing these limitations, authorities aim to curb illegal financial activities in the cryptocurrency sector and ensure that only eligible participants can legally mine digital currency.