Russia Implements New Cryptocurrency Tax Regulation Amid Bitcoin Surge

MetaversePlanet December 3, 2024Last Updated: December 3, 2024

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Russia has introduced a new cryptocurrency tax regulation as Bitcoin (BTC) reaches an all-time high against the Russian ruble. The Federation Council, the upper house of Russia’s parliament, has approved the new taxation framework for cryptocurrency transactions.

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Cryptocurrencies Recognized as “Property”

Russia Implements New Cryptocurrency Tax Regulation Amid Bitcoin Surge

The Russian government has been actively exploring cryptocurrencies and blockchain technologies. Recently, Russia legalized the use of crypto assets for international payments and forex transactions. Building on this development, the Russian Federation Council has approved a regulation that officially defines cryptocurrencies as “property.”

This new law imposes a 13% to 15% personal income tax on cryptocurrency sales but provides an exemption for Russian cryptocurrency miners, who will not be required to pay value-added tax (VAT) on the coins they produce.

The bill, discussed three times in the State Duma, is now awaiting the signature of Russian President Vladimir Putin. Once signed, it will be published and officially come into force.

Cryptocurrency Mining Under State Control

The regulation strengthens state oversight of cryptocurrency mining by requiring mining infrastructure operators to report their activities to local authorities. Operators who fail to comply face a fine of 40,000 rubles (approximately $360). Notably, services provided by authorized mining operators will remain exempt from taxes within Russian territory.

Aimed at Regulating and Legalizing Cryptocurrencies

This new law is seen as an effort by Russia to combat informality and prevent misuse of cryptocurrencies, while providing a legal framework for cryptocurrency mining and transactions. By regulating the sector, the government seeks to bring greater transparency and stability to its growing crypto economy.

Russia’s approach to cryptocurrency taxation and mining regulation reflects its strategic effort to integrate blockchain technology into the country’s financial system while maintaining state control.