Written by: Martin
Recently, the public statements of Elvira Nabiullina, the Governor of the Central Bank of Russia, during an interview with RBC have attracted global attention. She explicitly pointed out that cryptocurrency mining could be one of the important factors contributing to the strengthening of the ruble. Although it cannot be directly attributed, she acknowledged the value inflow brought by mining activities, which has become an auxiliary factor supporting the national currency exchange rate. This position marks a further clarification of Russia's regulatory attitude towards the cryptocurrency mining industry and highlights the special value of this sector in the national economy.
On November 1, 2024, the bill legalizing cryptocurrency mining in Russia officially takes effect, laying a regulatory foundation for the industry's development. According to the new regulations, legal entities and individual entrepreneurs must register with the special registration office of the tax authorities, and individual miners must comply with a monthly energy consumption limit of 6000 kilowatt-hours. All practitioners are required to declare their mining income in accordance with the law.
Supporting tax policies have been implemented simultaneously, with digital currencies recognized as property, mining and sales activities exempt from value-added tax, and personal income tax levied at a progressive rate of 13%-15%, while corporations are subject to a standard tax rate of 25%.
Under the policy dividends, Russia's mining industry has rapidly risen, currently ranking second in the world in computing power, accounting for over 16% of the global share in summer, with a Bitcoin output of about 54,000 in 2023, contributing approximately 2.5 billion rubles in taxes to the federal budget each year.
In a special economic environment, this industry has not only created a large number of jobs and attracted overseas investment, but also effectively reduced dependence on foreign exchange through an experimental cross-border cryptocurrency settlement mechanism, indirectly providing support for the stability of the ruble.
It is worth noting that Russia has always adhered to the bottom line of financial security, clearly stating that cryptocurrencies may not be used as domestic payment means, but only as investment tools, and balancing energy consumption issues through regional mining restrictions and tiered electricity pricing.
From the legalization regulations to the improvement of the tax framework, Russia is building a cryptocurrency industry ecosystem that emphasizes both regulation and development, with the connection between the mining industry and the stability of the ruble being officially recognized. This not only reflects the innovative exploration of the digital economy era but also provides a new reference model for global cryptocurrency asset regulation.
