Russia To Overpower the US, Strengthens Crypto Position

• Russia enters the global crypto race with new tax laws and digital asset recognition.
• News law recognizes cryptos as property, enhancing Russia’s crypto market integration.
• Russia’s crypto shows $6.8B in assets, signalling a commitment to digital finance growth.

Russia has joined the global cryptocurrency race, including the United States, China, and El Salvador. Though the country holds comparatively a small share of the world’s cryptocurrency market, Russia envisions a leading position worldwide, overpowering the US. In anticipation of solidifying its hold in the global financial economy, Russia has already taken some key steps to regulate the crypto market, including the Federation Council’s recent extensive tax code.

New Tax Regulations 

On November 29, Russia approved a major crypto regulation, setting personal income tax on transactions at 13-15%. This move is expected to help create a more defined tax framework for crypto traders. The legislation also removes the mining of cryptocurrencies from the VAT to attract capital to this sector. 

This bill further requires mining infrastructure operators to submit reports of their undertakings to the local authorities. For violating the regulation, a fine of 40,000 rubles, equivalent to 383 US dollars, will be imposed. This step is aimed at enhancing the performance of Russia’s mining industry, a significant and rapidly growing sector in the government’s control.

India is another competitor in the crypto space, vying with the global powers like the US. The country levies a 30% tax, and an additional 1% TDS on crypto sales exceeding ₹50,000. 

A significant aspect of the legislation is the legal recognition of digital currencies. Cryptocurrencies are now classified as property, giving them legal standing. This is important for Russia’s ongoing efforts to integrate crypto into its legal and financial systems. It also covers digital currencies used in foreign trade agreements under Russia’s experimental crypto regime.

Russia’s Crypto Market Data

According to data from the country’s central bank, Russian citizens have exposed $6.8 billion of cryptocurrencies in the centralized exchanges. However, this sum is still not as big as the crypto assets of the United States, the United Kingdom, and Ukraine. The recent move by the Russian government to regulate cryptocurrency shows that the country believes in being part of the market in the future.

The new tax system and regulatory environment are linked to a larger plan to advance the development of digital finance without evasion and corruption. While Russia strives to establish its position in the crypto market, its actions may provide an example for other countries with similar objectives.

The Russian government’s actions reflect a larger trend among BRICS countries aiming for financial independence and de-dollarization. As these countries push to shift away from traditional financial systems, Russia’s crypto efforts may help strengthen its position in the global economy.

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