Is cryptocurrency mining permitted?

At present, cryptocurrency mining is not prohibited under Russian law. Federal Law No. 259-FZ dated July 31, 2020 recognizes digital currency as property and does not contain any restrictions on its mining. Accordingly, both individuals and legal entities may engage in mining, subject to general tax and commercial law requirements. If mining is conducted on a systematic basis with income generation, tax authorities consider such activity as entrepreneurial, and it is subject to taxation. Individuals in this case may need to register as individual entrepreneurs, while legal entities must reflect income in their accounting records and pay applicable taxes. It is also necessary to consider possible energy consumption restrictions and regional regulations, especially for large-scale mining operations, as well as the requirement to document income and expenses.