{“paragraph”:”Russia is advancing regulatory measures in its cryptocurrency sector with a proposed Value-Added Tax (VAT) on mining equipment and data center rentals to foreign companies and mining pools. Scheduled for implementation from September 1, 2024, this initiative follows the legalization of cryptocurrency in cross-border transactions and digital asset exchanges, including major cryptocurrencies like Ethereum (ETH) and stablecoins such as USDT. By November 2024, cryptocurrency mining gained legal status, ending years of unregulated operations. As of January 2025, industrial miners and Mining Infrastructure Operators (MIOs) are required to register with the Federal Tax Service (FTS), with 116 MIOs and 606 industrial miners registered by April 1, 2025. However, the FTS estimates significant non-compliance remains.”}, {“paragraph”:”The proposed VAT, set at a general rate of 20%, targets services including equipment rentals and real-time hashrate provision to foreign clients, with potential exemptions for transactions within the Eurasian Economic Union (EAEU). The Ministry of Finance anticipates annual revenue of 45-60 billion rubles, earmarked for domestic power infrastructure upgrades. Critics warn of potential industry consolidation and migration of mining operations to lower-tax jurisdictions like Kazakhstan, which could reduce Russia’s global mining influence.”}, {“paragraph”:”Key legislative details include mandatory registration for industrial miners and MIOs, with stringent documentation requirements such as notarized company charters, equipment lists, and energy consumption reports. The draft law is currently under public consultation, with parliamentary review expected before a potential January 1, 2026, implementation. Disputes persist over tax classification and energy cost allocation, highlighting challenges in balancing regulatory oversight with industry sustainability.”}