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Russia moves closer to cryptocurrency tax law approval

Russia moves closer to cryptocurrency tax law approval

GrafaGrafa2024/11/28 10:10
By:Liezl Gambe

Russia’s Federation Council has approved a bill introducing taxation rules for cryptocurrency transactions and mining activities, now awaiting President Vladimir Putin’s signature to become law.

This legislation marks a significant development in Russia’s regulatory framework for digital assets.

Under the new rules, cryptocurrency transactions will be exempt from value-added tax (VAT), but income from trading will be taxed at rates similar to capital gains, reaching up to 15% for personal income tax.

Mining income will also be taxed based on the market value of cryptocurrencies at the time they are mined.

The bill designates cryptocurrencies as a form of property, establishing a clear regulatory structure for digital assets.

Mining operators will face stricter controls, including mandatory reporting of client information to tax authorities.

This measure aims to enhance transparency and compliance in the rapidly growing cryptocurrency mining sector.

Additionally, Russia has implemented regulations to manage energy consumption for mining.

A recent measure caps unregistered individuals at a maximum monthly energy use of 6,000 kilowatt-hours for Bitcoin (CRYPTO:BTC) and other cryptocurrency mining.

These steps are part of broader efforts to conserve energy resources and ensure equitable taxation in the energy-intensive mining industry.

With approval from both the State Duma and the Federation Council, the bill is in its final stages.

Once signed by President Putin, the new tax rules will take effect, positioning Russia to regulate its cryptocurrency market while balancing innovation and compliance.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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