The Russian government is set to receive millions of rubles in tax revenue from cryptocurrency miners, though not as many as initially expected.
Profits in the expanding sector have been hit by rising electricity rates and regional restrictions, a depreciated U.S. dollar and Bitcoin, while the bulk of crypto farms continue to mint under the radar.
Mining businesses to pay Moscow 10 times less than projected
Companies and sole proprietors engaged in cryptocurrency mining will transfer to the Russian state around 567 million rubles in taxes for 2025.
The figure, equal to a little over $7 million at the current exchange rate, was announced by Denis Kuzmichev, who heads taxpayer registration and accounting at the Federal Tax Service (FNS).
During a presentation, the official detailed that 84 million rubles will be submitted in the form of personal income tax, and another 483 million will be paid as corporate income tax.
The largest amount of tax due has been calculated for the second quarter of last year, approximately 180 million rubles, Kuzmichev pointed out, quoted by the RIA Novosti news agency.
During a meeting on the matter, the Director of Russia’s Industrial Mining Association (APM), Sergey Bezdelov, noted that earlier estimates had suggested that tax revenue from mining would reach 6 billion rubles (around $74 million).
His remark came after his colleague listed some of the negative factors that have contributed to the much lower estimate now, including increased electricity tariffs in Russia and the currently high global hash rate of the Bitcoin network.
Kuzmichev also highlighted the lower exchange rates of the Greenback against the Russian ruble and the diminished price of BTC ($73,739.00 · Live) as well as the limited level of legalization in the country’s coin minting industry.
Russia regulated mining in 2024 by adopting legislation allowing legal entities, individual entrepreneurs, and even citizens to get involved in the nation’s first legitimate crypto business.
The first two categories are required to register with the tax authority, while ordinary Russians are free to mint without registration, as long as they burn less than 6,000 kWh of electricity monthly.
At the same time, all crypto miners are obliged to inform the FNS about the amount and type of the digital currency extracted and its value as well as the mining hardware used in the process.
However, according to earlier statements by other Russian officials, more than two-thirds of active mining enterprises are yet to register and come out of the shadow economy.
Russia’s growing mining sector faces restrictions and fines
Legalization certainly helped the expansion of mining in the Russian Federation, which is rich in energy resources and cool climatic conditions, appropriate for the activity.
According to the Ministry of Energy, the industry’s annual electricity consumption is 16 billion kWh, the head of the APM also reminded. Quoted by TASS, he stressed:
“This represents approximately 2% of Russia’s electricity demand.”
The total capacity of mining farms and data processing centers connected to the grid reached to 4 GW in 2025, a 33% increase over the previous year.
To help address electricity shortages in parts of the country, often blamed on miners, the Russian government completely prohibited the activity in 10 regions – from the Far East and Siberia to the republics in the Caucasus and the occupied oblasts of Eastern Ukraine.
A seasonal ban on mining during the cold months of the year in another two regions, the Republic of Buryatia and Zabaykalsky Krai, expired on March 15, although the federal government is considering introducing year-round restrictions there, too.
The matter was discussed at a government commission meeting on the development of the electric power industry in June, but the decision was postponed at the time.
Mining businesses will soon be facing hefty fines for breaking these restrictions. On Monday, the legislative committee at the State Duma, the lower house of the Russian parliament, approved and recommended for adoption a bill introducing the new financial penalties.
According to the draft, individuals will be fined between 100,000 and 150,000 rubles, while companies will pay 1 to 2 million rubles (nearly $25,000) or have their operations suspended for up to 90 days. In both cases, the mining equipment may be confiscated.
Fines will also be imposed for mining without registration when such is mandatory. These can be slapped on citizens, entrepreneurs, or legal entities and range from 100,000 to 500,000 rubles (over $6,000).
If you’re reading this, you’re already ahead. Stay there with our newsletter.
Be the first to comment