Russia Crypto Mining Law and Taxes: 221-FZ Explained

Since 1 November 2024, cryptocurrency mining has been legal in Russia under Federal Law No. 221-FZ. Miners operating as sole proprietors or companies must be entered in a Federal Tax Service (FNS) registry, while private individuals may mine without registration as long as their electricity consumption stays under a set limit (6,000 kWh per month). Mining income is taxable; for individuals that means personal income tax (NDFL) and an annual 3-NDFL return. This is a general overview for an international reader, not a substitute for professional advice.

This material is informational and is not tax or legal advice. Rules change, and how they apply depends on your circumstances. Before making decisions, check the current text of the law and the guidance of the FNS and the Ministry of Finance, or consult a Russian tax adviser.

What changed on 1 November 2024

Before the law, mining existed in a grey area: there was no direct ban, but no clear framework for accounting for income either. Federal Law No. 221-FZ introduced a definition of digital-currency mining, rules for miners and a registry maintained by the authorities. It took effect on 1 November 2024. The key idea is that the activity is allowed if carried out in forms the law provides for: either as a business (with entry in the registry) or as personal activity within the limit.

The law also restricts the use of digital currency inside the country (for example, paying for goods and services within Russia) and sets special rules for settlements. Those topics are outside this article, but they matter if you plan to dispose of the coins you mine.

The miners' registry: who needs to be in it

The registry is run by the Federal Tax Service. Sole proprietors and legal entities engaged in mining are entered into it. Registration involves an application and details about the equipment, its location and similar information; the full list and form are set by regulations.

In practice this means:

• if you mine as a business — at industrial scale, for profit, with rented premises and hosting — you will most likely need to register as a sole proprietor or company and enter the registry;
• being in the registry does not remove taxes — it only defines your legal status;
• using unregistered equipment or failing to meet the requirements can lead to liability.

Check exact conditions, deadlines, documents and penalties in the text of the law and on the FNS website.

Private individuals and the 6,000 kWh limit

Individuals who are not registered as sole proprietors may mine without entering the registry if electricity consumption for mining does not exceed the set limit of 6,000 kWh per month. For orientation: a 3.5 kW ASIC running continuously uses about 2,500 kWh per month (3.5 kW × 24 h × 30 days), so roughly two such devices fit within the limit. The real headroom depends on the model, operating mode and additional loads such as ventilation and cooling.

Important caveats:

• the limit applies specifically to consumption for mining, and data from power suppliers, among other sources, may be used to check it;
• exceeding the limit means the activity goes beyond personal mining and requires registry entry;
• if you place equipment at a hosting facility, questions about metering and responsibility must be clarified in the contract with the provider and in the law.

If you plan to mine at home, beyond taxes consider wiring load, noise and heat — see the article on mining at home.

Tax on mining income

Mining income is taxable. In practice:

• Individuals. Subject to NDFL. The rate depends on total annual income and the current scale (since 2025 Russia has applied a five-step progressive scale); verify exact rates and thresholds in the Tax Code. The 3-NDFL return is filed after year-end.
• Sole proprietors and companies. Under the rules in force since 2025, mining is carried out under the general tax system (OSNO): special regimes, including the simplified system, are generally not available for this activity. Electricity, equipment depreciation and hosting may be recognised as expenses — check the procedure with an accountant.

The fundamental questions are when income is recognised and how it is valued. Amendments to the Tax Code (Federal Law No. 418-FZ, effective 1 January 2025) treat mined coins as income in kind: the date of receipt is the day the miner gains the right to dispose of the coins, and they are valued at market price. A later sale of the coins is taxed separately. Because of amendments and clarifications, it is especially important to consult current rules and to keep records: pool statements, payout history and the exchange rate on the dates of transactions.

What helps with record-keeping

• Statements of earnings and payouts. Subaccount statistics are available in your pool account; for accounting, keep your own table of payouts with dates, amounts in coins and the rate on the date.
• Separate subaccounts. If you have several projects or clients, separate subaccounts help keep records apart. See the article on worker names and subaccounts.
• Documents for equipment and electricity. The ASIC purchase contract, payment documents and bills for electricity or hosting are the basis for confirming expenses, if your tax regime recognises them.
• A tax adviser. Rules for determining the base, recognising expenses and filing for mining are complex and change; a consultation saves more than it costs.

Taxes also belong in your payback calculation because they reduce net income. For the method, see how to calculate ASIC payback, and estimate revenue in the profit calculator.

Particular situations

Mining at a hosting facility

If your equipment sits in a data centre, electricity is paid through the hosting tariff. For personal mining this does not remove the question of the limit: how consumption is counted depends on the contract and legal requirements. Ask the provider for a consumption report for your devices and keep it.

Payouts to several wallets

If you mine on several subaccounts with different wallets, keep records for each address. For tax purposes it matters to show where coins came from, when, and at what rate they were valued. A chronological payout table with transaction hashes makes preparing a return much easier.

Selling and using coins

The moment and the way coins are converted into currency affect tax consequences. The law restricts the circulation of digital currency inside Russia and the procedure for dealings with foreign counterparties. Before moving coins to an exchange or using them in payments, check the permitted arrangements with a lawyer or tax adviser.

Regional restrictions

The Russian Government may ban mining in particular territories, usually at a region's request and because of electricity shortages. Such bans are already in force: in some regions all year round (for years ahead), in others seasonally during cold-season peak load, sometimes only in certain districts.

This means that even if you meet federal requirements, mining may be temporarily or permanently banned in a specific region. Before buying equipment or signing a hosting contract, check current regional regulations and the position of the local power supplier. If you use hosting, ask the provider whether the site falls under any restrictions.

What to do in practice

1. Determine your status: personal mining within the limit or a business activity.
2. If you exceed the limit or operate as a business, register as a sole proprietor or company and apply for registry entry.
3. Choose a tax regime and set up accounting for income and expenses.
4. Keep statements of earnings and payouts, plus documents for equipment and electricity.
5. Check regional bans and restrictions for the location.
6. Review changes in legislation once a year.

Base all decisions on taxes and status on current legal texts, not only on overviews, including this one.

FAQ

Do I have to pay tax if I mine only for myself?

Yes, mining income is taxable regardless of scale. For individuals that means NDFL and a 3-NDFL return. The size of the base and the deadlines depend on current rules, so verify them or consult a specialist.

What happens if I exceed the 6,000 kWh limit?

Exceeding the limit means the activity goes beyond personal mining without registration. You would need to register as a sole proprietor or company and enter the registry. Consequences and liability are set by legislation.

Can I mine if my region has a ban?

Regional bans and restrictions are binding. Find out the current rules for the place where the equipment is located, and the power supplier's terms, before buying an ASIC.

Does RuPool help with tax reporting?

The pool provides earnings and payout statistics in your account that you can rely on for record-keeping. Calculating the tax base and filing returns is done by you or together with a tax adviser.