Russia is moving quickly to enforce new taxes on cryptocurrency transactions as Bitcoin continues to soar, reaching new all-time highs against the ruble.
On November 27, the Federation Council, the upper house of Russia’s parliament, approved a landmark bill that will regulate digital currencies like Bitcoin. The legislation now awaits President Vladimir Putin’s signature to become law.
Once signed, the new law will classify digital currencies as property, meaning cryptocurrency sales will be taxed at rates between 13% and 15%, depending on income. However, Russian miners of cryptocurrencies will be exempt from paying VAT (Value Added Tax) on the coins they mine.
The law also mandates that mining infrastructure operators report data to the government about crypto mining activities, with fines of around $360 for those who fail to comply.
The bill is seen as a major shift in how Russia is treating cryptocurrency, with the government now seeking greater control over this growing industry. Mining revenue will be taxed as income, and mining businesses will face the standard corporate tax rate.
The legislation also includes a provision that allows digital currencies used in experimental legal regimes, such as foreign trade agreements, to be treated similarly to other assets.
Bitcoin’s surge in value within the country of Russia has made the new tax law particularly timely. On November 27, Bitcoin hit a new high, reaching over 11 million rubles, driven by global price increases and a weakening ruble. As Bitcoin approaches $100,000 globally, Russia’s new tax rules reflect a broader push for transparency and regulation in the cryptocurrency market.
These changes are part of Russia’s strategy to regulate its cryptocurrency sector, with the government aiming for controlled growth while ensuring it can tap into the potential tax revenue. The law also aligns Russia with global efforts to bring clarity to digital asset regulation. If all goes as expected, the new tax regime will be fully in place by 2025.
