Crypto Taxation in Russia

Russia's cryptocurrency tax framework changed fundamentally on 1 January 2025 when Federal Law No. 418-FZ, signed by President Putin on 29 November 2024, brought amendments to the Tax Code into force. For the first time, digital currency -- including Bitcoin and other cryptocurrencies -- is formally recognised as property, and income from its sale or exchange is subject to personal income tax (NDFL) under rules closely mirroring the treatment of securities. Crypto mining is now a regulated activity requiring operators to register with the Federal Tax Service (FNS). The law was enacted alongside August 2024 amendments under Federal Law No. 259-FZ, which established mandatory mining registration requirements that became effective 1 November 2024 [SC1, SC2].

How is cryptocurrency classified under Russian law?

Federal Law 418-FZ amends the Russian Tax Code to define digital currency as property for tax purposes [SC1]. This is distinct from digital financial assets (DFAs), which are tokenised monetary claims or securities-like instruments. The property classification means that owning cryptocurrency is not prohibited, but using it for domestic payments is. The Bank of Russia and the Ministry of Finance have consistently maintained that the ruble -- including the digital ruble -- is the only legal means of payment for transactions within Russia. Under the law on digital financial assets previously in force, using crypto to settle domestic commercial transactions was already restricted; enforcement fines for companies using crypto in domestic payments are set in the range of 700,000 to 1,000,000 rubles, and fines for individuals in the range of 100,000 to 200,000 rubles, applicable from 2026 [SC3]. An experimental legal regime (ELR) permits crypto to be used in certain cross-border international trade settlements, enabling Russian exporters and importers to bypass Western sanctions, but this regime is restricted to qualified participants and does not alter the domestic payment prohibition [SC4].

What personal income tax rates apply to cryptocurrency gains?

Under Federal Law 418-FZ, gains from selling or exchanging digital currency are included in the same combined tax base as income from securities transactions -- covering the sale of shares, bonds, investment units, repo transactions with securities, and income from individual investment accounts (IIA) and bank deposits. This combined base is taxed under Russia's progressive NDFL scale at 13 percent on annual income up to 2,400,000 rubles (approximately 26,500 US dollars at 2025 exchange rates) and 15 percent on annual income exceeding that threshold [SC1, SC5]. These are the rates that apply specifically to investment and capital income; the FNS has confirmed that the higher marginal brackets of 18 percent, 20 percent, and 22 percent that apply to very high earned income (above 5 million, 20 million, and 50 million rubles respectively) do not apply to investment income including crypto -- investment income is capped at 15 percent regardless of the amount [SC5]. Non-residents of Russia are subject to a flat tax of 30 percent on Russian-sourced crypto gains and may not use deductions [SC6]. Gains are calculated as disposal proceeds minus acquisition cost, intermediary fees, and documented storage expenses. Taxpayers may use FIFO (first-in, first-out) or average-cost methods to determine acquisition cost where lots cannot be individually identified [SC2].

Who must register for crypto mining and how?

Federal Law 259-FZ (effective 1 November 2024) created a national mining registry administered jointly by the Ministry of Energy, the Ministry of Digital Development, and the FNS. Professional miners -- organisations and individual entrepreneurs engaged in continuous cryptocurrency extraction on a commercial scale -- must register in this registry and report to local FNS offices [SC2, SC7]. Individual miners using more than 6,000 kilowatt-hours of electricity per month must formally register as a business entity; those below that threshold may mine without business registration but are still required to report mined tokens monthly via the FNS personal-account portal, disclosing the type, quantity, and market value of digital assets produced, as well as the hardware used [SC2]. Mining operators are additionally required to disclose the IP addresses associated with their mining infrastructure, a requirement introduced in 2025 as part of enhanced FNS oversight [SC7]. Failure to report on time or at all is subject to a fine of 40,000 rubles (approximately 440 US dollars) [SC1]. Mining income is taxed as income received in kind, valued at market rates on the date the coins are received in the wallet. Miners may deduct documented operational expenses -- electricity costs, hardware depreciation, and intermediary fees -- before calculating the taxable amount [SC5, SC8]. Mining income is reported as general income (not the securities-income combined base) under the NDFL progressive scale.

What are the VAT rules for cryptocurrency?

Federal Law 418-FZ exempts both the mining and the sale of digital currency from value-added tax (VAT) [SC1, SC4]. The exemption extends to cryptocurrency exchange services and digital-asset custody and depository services, meaning licensed crypto exchanges operating in Russia do not charge VAT on trading fees or custody income. This aligns with Russia's broader policy of treating crypto analogously to securities, which are themselves VAT-exempt financial instruments. The VAT exemption is one of the law's most commercially significant provisions for the mining industry, given Russia's position as one of the world's largest cryptocurrency mining markets by energy consumption. No VAT registration requirement applies to miners solely as a result of mining activity.

What are the reporting and filing obligations for individuals?

All individuals who have realised taxable gains from selling or exchanging digital currency must file a Form 3-NDFL income tax declaration with the FNS for the relevant tax year [SC5, SC8]. The filing deadline is 30 April of the year following the income year -- so gains earned in 2025 must be declared by 30 April 2026. Tax due must be paid no later than 15 July of the same filing year [SC5]. All values must be converted to rubles using the Central Bank of Russia exchange rates applicable on each transaction date. Gains and losses within the digital-currency combined base (which includes securities income) are netted against each other; losses may offset gains within the same combined base in the same year. Miners must also submit quarterly reports to the FNS in electronic format, no later than the 25th of the month following each quarter's end, covering mined-token volumes and valuations [SC8]. Individuals and entities with total annual crypto transactions exceeding 600,000 rubles are subject to enhanced transaction monitoring by the FNS [SC2]. Criminal liability (imprisonment of 18 months to 5 years) applies where undisclosed holdings exceed 45,000,000 rubles across two of the preceding three years [SC2].

See the Russia country overview for the broader Russian tax framework including residency rules and tax treaty network. The framework summarised here reflects publicly available information; individual circumstances -- including residency status, mining scale, and the source of digital assets -- materially affect outcomes. Consult a qualified tax professional registered in Russia before making any filing or compliance decision.