Russia Implements 13%-15% Crypto Tax, Mining VAT Exemptions, and Energy Caps  

• Russia’s crypto tax law introduces a 13%-15% levy, VAT exemptions for miners, and penalties for non-compliance to ensure regulatory transparency.  
• Energy consumption limits and temporary mining bans address electricity shortages as Bitcoin hits 11M rubles, reflecting the ruble’s devaluation.  
• Russia’s new crypto rules sparked an 8% rise in crypto-related traffic, with exchanges like Deribit reporting significant spikes in activity.  

Russia has enacted a comprehensive law to regulate cryptocurrency transactions, including buying, selling, and mining. The new regulations impose a tax rate of 13% on annual incomes up to 2.4 million rubles and 15% for higher earnings. The Federation Council approved the legislation, marking a significant shift in crypto governance. 

Moreover, the law classifies digital currencies as property, providing legal clarity for cryptocurrency operations. Miners benefit from VAT exemptions but are now obligated to report detailed operational data to tax authorities. Non-compliance with these requirements will result in penalties reaching up to 40,000 rubles.  

Energy Restrictions Tighten on Crypto Mining  

New energy restrictions specifically target unregistered mining operations. Consumption is now capped at 6,000 kilowatt-hours per month for such activities. Licensed miners, however, face taxation based on the market value of cryptocurrencies at the time of mining. Importantly, VAT exemptions apply to mining conducted through registered platforms.  

Additionally, regional authorities have introduced temporary mining bans in certain areas due to electricity shortages. These restrictions, effective since November 1, are expected to last until March 2025.  

Bitcoin Surges Amid Ruble Decline  

Bitcoin’s value skyrocketed to 11 million rubles on November 27, reflecting both global trends and the weakening of the Russian ruble. Over the past year, the ruble’s value has dropped by 25%, currently trading close to 113 rubles per US dollar.  

In November, Bitcoin saw a 45% price increase, rising from $68,000 to $99,000. This surge coincides with the economic impact of new regulations and heightened crypto activity in Russia.  

Crypto Traffic Spikes Under New Rules  

The introduction of strict crypto laws has significantly increased online activity related to cryptocurrencies. Russia reported an 8% rise in crypto-related internet traffic, with major exchanges seeing substantial user growth. Deribit experienced a 126% traffic increase, while KuCoin reported a 23% surge.  

These regulations aim to stabilize the cryptocurrency market while addressing taxation and energy concerns. The measures underscore Russia’s intent to bring structure and transparency to its crypto ecosystem.