Crypto and Taxes in the CIS: Where You Must Declare — and Where You Can Keep Quiet
Cryptocurrencies are gaining popularity across all CIS countries, but tax rules vary widely. Some states explicitly require declaration and taxation of crypto income, while others still have legal gaps — or even prohibitions. Below we review each CIS country in turn: whether crypto assets must be reported, how they’re taxed, what penalties apply for evasion, and where the law still has ‘gray zones’.
Russia
In Russia, cryptocurrency is officially recognized as property, not as legal tender. Using it to pay for goods and services domestically is prohibited by law, but citizens may buy, sell, and hold digital coins. Income from crypto transactions is subject to personal income tax at 13% (15% for annual amounts over 5 million rubles). In other words, profits from price differences on purchase and sale must be included in your tax return. There is no special mining tax, but starting in 2025 mining is recognized as entrepreneurial activity and is taxed under general rules.
Declaration
Ordinary citizens are not yet required to report the mere fact of holding cryptocurrency (an exception applies to public officials, who since 2021 must disclose such assets). However, if transactions occurred and income was received, it must be declared and personal income tax paid. The Russian tax service has explicitly stated that profits from selling cryptocurrency should be reported on Form 3-NDFL. A universal reporting obligation is planned if annual crypto transactions exceed 600,000 rubles, but that bill is still in development. In practice, many Russians voluntarily declare crypto income to legitimize it and avoid claims.
Penalties
Failure to pay tax on crypto income carries the same sanctions as any other tax violation. The fine is 20% of the unpaid amount, and up to 40% if intent is proven. Interest accrues for each day of delay. In cases of large-scale evasion, criminal liability may apply. For example, undeclared mining (non-payment of taxes on mining activity) can be prosecuted as tax evasion causing especially large damage — up to imprisonment.
Legal Status
Overall, cryptocurrency in Russia exists in the legal field as a digital financial asset. Basic laws (No. 259-FZ ‘On Digital Financial Assets’, etc.) regulate circulation: paying with bitcoin is banned, but ownership and trading on exchanges are allowed. In 2024, amendments permitted the use of digital currency in foreign trade settlements (as a sanctions workaround). Thus Russia is gradually building a framework: by requiring taxes on profits and reporting of income, the state de facto recognizes crypto as a property right of citizens.
Belarus
Belarus is known for its initially liberal approach. In 2018, Decree No. 8 ‘On the Development of the Digital Economy’ legalized token activities in the High-Tech Park (HTP) and exempted individuals from taxes on crypto operations for several years. Until the end of 2024, income of individuals from mining or trading via HTP residents was tax-free and did not require declaration. However, starting in 2025 the preferential period ends: new tax rules apply to operations outside the HTP.
Declaration
Beginning with income for 2025, Belarusians must file an annual tax return and include profits from crypto transactions. This covers income from foreign exchanges and counterparties as well as any other permitted virtual-asset deals. The return must be filed by March 31 of the year following the tax year, and tax paid by June 1. If all transactions were conducted through HTP residents (e.g., Belarus-licensed exchanges) or income was from mining, token-to-token swaps, inheritance, or gifts, then nothing needs to be declared — such income is tax-exempt.
Taxes
From 2025, a 13% personal income tax applies to profits from permitted crypto operations by individuals. The tax base is the actual cash proceeds when cashing out crypto (acquisition costs of tokens are not deducted). Importantly, if undeclared income is discovered, the tax rate doubles to 26%. HTP residents continue to enjoy benefits: if transactions go through HTP companies, no tax is collected. Legal entities outside the HTP pay taxes on crypto activity at ordinary rates (e.g., 18% corporate income tax).
Penalties
Consequences for non-reporting are quite strict. Failure to file a return for crypto income can result in an administrative fine of 2–10 base units. Non-payment of tax adds a 15% fine on the unpaid amount, and 40% for intentional non-payment, but not less than 10 base units. As noted, hidden income identified by tax authorities is taxed at double the rate (26%). In addition, violators may face liability for illegal entrepreneurial activity if crypto transactions were conducted systematically outside the legal framework.
Legal Nuances
Despite the new taxation, Belarus remains among the most progressive CIS countries on crypto. Citizens may own cryptocurrency; legal exchangers and HTP-resident exchanges operate. The government emphasizes seizing the opportunity while imposing order and oversight. The framework is being revisited; new regulations are expected to let business and investors ‘work calmly’ with crypto while ensuring transparency and supervision.
Kazakhstan
In recent years Kazakhstan has actively regulated the crypto industry. Authorities officially treat cryptocurrency as an unsecured digital asset, not legal tender. Nonetheless, operations are legalized under special conditions. The Astana International Financial Centre (AIFC) is a special jurisdiction where crypto exchanges can register. Trading is allowed only via exchanges accredited in the AIFC and primarily for non-residents (or within the Centre itself) — Kazakh financial institutions are currently barred from directly servicing citizens in this sphere. This creates a controlled crypto environment parallel to the main economy.
Declaration and Taxation
Any income from selling cryptocurrency in Kazakhstan is taxable. For individuals, crypto profit is treated as investment income and included in annual total income. The personal income tax rate is 10% of the difference between sale price and purchase price. For legal entities, income from digital-asset operations is taxed at the standard 20% corporate income tax. Mining is taxed separately: since 2022 there has been a fixed levy of 1 tenge per kWh of electricity consumed for mining, with plans to raise this fee and introduce mandatory licensing. A law requires all miners to operate through state-accredited mining pools, without drawing power directly from the general grid. Miners must also pay corporate income tax on mining income.
Liability
There are no specific criminal provisions for ‘illegal’ crypto turnover — mere possession or exchange without a license is not criminally punishable. But tax evasion is prosecuted under general rules. For example, hidden mining (non-payment of taxes/levies) may incur fines of two to three times the unpaid amounts; in severe cases, imprisonment from 5 to 8 years is possible. Administrative offenses also apply for related violations (disseminating prohibited crypto information, breaching AML rules, etc.), with fines up to 160 monthly calculation indices and potential suspension of business.
Gray Zone or Not?
Kazakhstan seeks to bring the crypto market out of the shadows. Legislation already details rules for miners and exchangers. Still, for ordinary citizens a de facto gray zone remains: many trade on foreign exchanges and use P2P platforms outside AIFC control. The state largely overlooks small activity, focusing on major players. The vector is clear: integrate crypto into the official economy under oversight (through licensing and taxes). In short, you must declare and pay tax if you officially realize crypto profits, though practical accounting mechanisms are still evolving.
Uzbekistan
Uzbekistan has chosen a strict yet distinctive approach. The law defines cryptocurrency as a property right — a set of digital records on a blockchain having value and an owner. Digital assets are not recognized as a means of payment domestically. Since January 2023, citizens may transact in crypto only via nationally licensed service providers (official exchanges, crypto exchangers). Access to foreign exchanges without a local license is blocked — for example, in 2022 access to Binance and others was restricted for operating without an Uzbek license.
Taxes and Declaration
Uzbekistan’s unique feature is the absence of taxes on crypto transactions. Under presidential decrees, all income related to the circulation of crypto assets is exempt from taxation. Thus neither individuals nor companies pay tax on trading profits, and there is no requirement to declare such income. The state appears intent on fostering the sector first, emphasizing licensing and monitoring via a limited circle of national platforms.
Restrictions and Liability
Despite the tax holiday, the playing field is tightly bounded. Mining is allowed only for legal entities with a special permit; miners face higher electricity tariffs but may use private solar plants. Operating without a license (e.g., running an underground exchange) can result in a fine up to 100 basic calculation units or 300–480 hours of community service. While tax evasion is irrelevant (no tax), persistent unlicensed mining/trading can be treated as illegal entrepreneurship: fines of 300–600 BCUs (about $800–$1,600) or restrictions/imprisonment for 3–5 years. Electricity theft in underground mining is separately punishable.
Legal Gaps
The crypto market is effectively confined to a ‘reservation’: only a few controlled platforms operate legally. This gives the state near-total visibility within the permitted sector, but drives many deals into the shadows via VPNs and foreign exchanges, risking blocks. It remains unclear whether citizens earning crypto income abroad must declare it as foreign income. Formally there’s no tax, and no reporting duty is prescribed. In practice, Uzbekistan is a country where you can ‘keep quiet’ in your tax return — provided you use only locally licensed services.
Armenia
Until recently, Armenia had little regulation. There is no special law directly governing digital assets. Crypto is not banned — citizens freely bought and sold it, though banks were cautious and sometimes blocked related transactions. In effect, this was a gray zone: no legal requirement to declare or pay taxes on crypto income. However, starting in 2023 Armenia launched universal income declaration for individuals, and by 2025 every tax resident must report all income and assets, including crypto operations.
Declaration
As of 2024, during the transition to universal declaration, the tax service requires reporting income from any crypto deals — both exchange trades and P2P transactions. Thus, if a resident sold crypto at a profit during the year, that profit must appear in the annual return. Otherwise, significant penalties loom — authorities warn of fines amounting to 50% of undeclared income. The strict stance is meant to encourage honest disclosure.
Taxation
As of 2025, specific tax rates for crypto are not set — general rules apply. Income from digital-asset operations is likely classified as investment or commercial income and taxed at Armenia’s flat personal income tax rate (about 20%). Observers expect potential refinements, but for now Armenia follows international practice where crypto tax rates typically range from 10% to 37%. For businesses, crypto-related income is presumably taxed at the standard 18% corporate income tax.
Legal Status and Outlook
Crypto is not prohibited and is treated as a digital asset. Mining is also unregulated (and likely uneconomical due to electricity costs). The Central Bank takes a cautious view, asking banks to monitor virtual-asset-related activity for AML reasons. The government recognizes that a dedicated framework is inevitable and has floated initiatives to develop the industry within the law. A digital-assets bill is expected in the near term, with clear requirements for exchangers and investors. For now, Armenia is de facto tolerant — but taxation of crypto income has arrived with the broader tax-administration reform.
Azerbaijan
Azerbaijan has recently clarified its tax stance. The State Tax Service announced that income from crypto operations is subject to personal income tax. By law, profits from selling cryptocurrency are treated as capital gains (non-entrepreneurial income) and taxed at 14% annually, aligning with the general personal income tax rate. In short, if you buy bitcoin cheaply and sell at a higher price, the difference must be included in your annual income and taxed at 14%.
Declaration and Accounting
Citizens earning crypto-trading income must register with the tax authorities and obtain a taxpayer ID. By March 31 of the following year, they must file a tax return reporting profits from crypto transactions and pay tax. Income is recognized on the date the cryptocurrency is disposed of (sold or exchanged for fiat), and the tax base is the difference between purchase and sale price — akin to capital-gains taxation.
Penalties
There are no crypto-specific penalties; general tax rules apply (fines, interest) for failure to file or for concealed income. Systematic, large-scale trading without registration may be treated as illegal entrepreneurship with corresponding measures. Authorities stress voluntary compliance and the duty of anyone earning from crypto to obey tax rules.
Legal Status
Cryptocurrency is not legal tender (you can’t pay with it), but buying, selling, and holding are allowed. Introducing taxation from 2025 signals integration into the official economy. Banks remain cautious, and not all facilitate transfers to crypto exchanges, but with clearer rules crypto is becoming a ‘visible’ part of the economy. In Azerbaijan you now must declare crypto income and pay tax — otherwise you risk fines and tax issues.
Kyrgyzstan
Until 2022 Kyrgyzstan’s legal environment resembled a vacuum, then it became one of the first CIS countries to adopt a dedicated digital-assets law. The Law of the Kyrgyz Republic No. 12 of 21.01.2022 ‘On Virtual Assets’ defined cryptocurrency (an unsecured virtual asset) and laid regulatory foundations. Key points: crypto is neither legal tender nor a security; operations are a licensed activity; and income from such operations is taxable.
Taxes
Kyrgyzstan applies a single 10% tax on profits from crypto operations for individuals — similar to ordinary income tax — on all trading gains. Mining is likewise taxed at 10% of income (the value of mined coins). Officials describe the regime as experimental; rates are kept relatively low to avoid driving the market underground.
Declaration
Since operations are legalized, citizens must declare crypto income under general rules (annual return). There’s no special form, but the tax service introduced a separate income code for virtual assets. Miners must register in a special registry before starting operations. As of 2023, over 400 mining farms were registered — limiting the feasibility of ‘quiet’ mining.
Liability
The virtual-assets law outlines certain violations (unlicensed activity, advertising and disclosure breaches), but many sanctions remain to be detailed. Known measures include fines of 600–800 calculation indicators (about 60,000–80,000 soms, $700–$900) and license revocation for operating without a license or violating its terms. Tax evasion is punished under general rules up to criminal liability for large sums. The framework is new, with few test cases to date.
Overall, Kyrgyzstan aims for a transparent environment: legalize crypto business and collect taxes rather than prohibit. This has attracted some investment — exchanges and exchangers are entering the market. Infrastructure is still forming and needs refinement (e.g., consumer protection). Citizens should declare crypto income, since the state officially recognizes it; otherwise lifestyle-to-income mismatches may draw scrutiny.
Tajikistan
Tajikistan has not yet developed a full legal framework for cryptocurrency, and this shapes the market. Crypto’s status is undefined: it is recognized neither as legal tender nor as property. Formally, crypto operations are ‘outside the law’, though there is no outright ban. The National Bank periodically warns of crypto risks, effectively discouraging use. There have been arrests of miners and equipment seizures — the state is hostile and tries to suppress crypto activity.
Mining and Taxes
Despite not recognizing crypto, authorities indirectly regulate mining. Anyone wishing to mine must register as a taxpayer and pay income tax. The rate is not explicitly set (likely the standard ~13%), and miners must pay a higher electricity tariff — 65.07 dirams per kWh (about $0.06, materially above the standard rate). Mining is thus heavily constrained: registration as a business, tax payments, plus special electricity pricing. Many ignore these rules and mine clandestinely, prompting police raids.
Penalties
There are no crypto-specific criminal provisions (since crypto is unrecognized), but offenders are pursued on other grounds. For tax non-payment (if undeclared income is found), fines range from 912 to 1,460 calculation indicators (about 62,000–99,000 somoni, $5.7k–$9.2k) or imprisonment for 5–8 years. Electricity theft (illegal connections or exceeding limits) carries separate fines — 5–10 indicators for individuals (up to 680 somoni, ~ $60) and 200–300 for legal entities (up to 20,400 somoni, ~$1.8k). Large underground mining cases often combine illegal entrepreneurship and power theft charges.
Legal Regime
Tajikistan is in a ‘gray’ period: crypto exists de facto (people hold it, trade online), but de jure it ‘doesn’t exist’. Authorities prefer prohibitive policies, fearing capital flight and uncontrolled flows. Until regional or international guidance emerges, a national crypto law is unlikely. For citizens this means there is officially no place or requirement to declare crypto — nor any protection of rights. Some may choose to ‘stay quiet’ and skip taxes if careful, but the risk of punishment under adjacent offenses remains.
Turkmenistan
Turkmenistan is one of the region’s most closed and conservative countries; unsurprisingly, there is almost no public information on crypto. Cryptocurrency is not legalized. No laws, decrees, or central-bank statements — official silence. An implicit ban likely exists in finance, though not codified. There are also no specific penalties for holding or using crypto, since there are no governing norms.
In practice, citizens face extreme difficulty participating in crypto markets. The internet is heavily censored; access to foreign exchanges is virtually impossible without circumvention tools. Banks monitor cross-border transfers; currency controls are strict. Only a few enthusiasts mine or invest — entirely at their own risk and without legal protection.
Taxes and Reporting
Because crypto does not exist in law, there is no concept of declaring it. No one files returns on bitcoin, and the tax service does not track such income. If a resident realizes crypto gains abroad and brings funds into the country, they may be treated as ordinary foreign income and taxed under general rules (personal income tax ~10%). But the tax code has no special mention of virtual assets.
Outlook
Resource-rich and centrally managed, Turkmenistan shows no interest in decentralized digital currencies. Policy may change under regional pressure in the future, but as of 2025 the sector is entirely in the shadows. It is arguably the only country in this review where the safest course is not merely that you can keep quiet about crypto — but that you probably should avoid attention.
Moldova
Moldova is not formally in the CIS, but is often grouped with the post-Soviet space and has a distinct crypto stance. The country has chosen the strictest approach: crypto operations are prohibited by law. In 2023, amendments (Law No. 66 of 30.03.2023) banned virtual asset service providers domestically. This means exchanges, OTC desks, crypto advertising — all such services are prohibited. Even as an adjunct to a core business — no. Financial institutions are barred from processing residents’ payments to foreign crypto platforms beyond the equivalent of 50,000 lei per month. The measures aim at AML and preventing capital flight.
Status and Ownership
Despite the harsh limits, there is a nuance: owning cryptocurrency is not prohibited. Moldovan citizens may purchase virtual currency, but can use it only abroad where permitted. If an investor opens an account on a foreign exchange and acquires crypto there, the purchase itself is lawful. However, they cannot legally convert crypto to lei or other currency through Moldovan banks; bank accounts for such operations are effectively unavailable (some banks piloted monitored accounts, but the overall regime remains extremely strict). In essence, a Moldovan can hold crypto or transact with it outside the country.
Taxes
Paradoxically, while operations are banned, Moldova’s tax law still accounts for crypto income. Cryptocurrency is treated as property owned by an individual. If a citizen earns foreign-sourced income from disposing of that property (e.g., selling crypto on a foreign exchange and withdrawing funds), it is taxable as investment profit. For legal entities, income from virtual-asset operations is taxed at 12% (standard corporate profit tax).
Declaration
All Moldovan tax residents must declare worldwide income, including that earned abroad. Therefore, if a citizen sells bitcoin for $10,000 and credits the money to a foreign account, they must report $10,000 as foreign investment income in the annual return. Tax authorities acknowledge they cannot directly track such income; they lack tools for monitoring foreign crypto operations. Compliance thus hinges on the taxpayer’s honesty. Many avoid declaring, leaving funds abroad or withdrawing in small amounts. Still, a recent trend sees some sophisticated investors proactively complying: withdrawing via banks, paying 6% (depending on regime), and legalizing crypto profits.
Penalties
The main sanctions in Moldova target violations of the operational ban, not under-reporting per se. Providing virtual-asset services triggers an administrative fine of 1,000–1,500 conventional units for individuals (about 50,000–75,000 lei). For companies or sole proprietors, it can be prosecuted as illegal entrepreneurship: fines of 2,000–4,000 units (up to 200,000 lei, ~ $11,000) and potential business bans. These norms have been enforced: in 2023, underground exchangers were identified and sanctioned.
Takeaway on Moldova
Moldova is currently an anti-model in the region — crypto is effectively banned, pushing the market underground and increasing illicit schemes. Authorities recognize the drawbacks and reportedly plan gradual legalization by 2026–2027. Until then, residents are officially advised to refrain from crypto operations. If income is earned, it is typically abroad and discreet — though formally it should be declared. The situation is paradoxical: you must declare, but you cannot use it domestically.
