The Russian government is hastily imposing new taxes on cryptocurrency as Bitcoin reaches historical highs against Russia's national currency, the ruble.
The Federation Council of Russia, the upper house of the parliament, has approved a federal bill imposing new taxes on cryptocurrency transactions.
This law, passed on November 27, recognizes types of digital currencies as assets and imposes a personal income tax of 13%–15% on cryptocurrency sale transactions. It also exempts Russian cryptocurrency miners from value-added tax (VAT) when mining coins.
The stages of reviewing bill number 1065710-7. Source: Sozd.duma.gov.ru
The bill has passed three readings in the State Duma before being approved by the Federation Council. It is currently awaiting the signature of President Vladimir Putin to become law. Once signed, it will take effect after official publication.
Russian cryptocurrency miners must report their activities to the government
According to the bill, digital currencies—including digital currencies used as a means of payment in foreign trade contracts under Russia's experimental cryptocurrency legal regime—are recognized as assets.
To control taxes, Russian cryptocurrency mining infrastructure operators must report information related to cryptocurrency mining services to local authorities.
Non-compliance will result in a fine of 40,000 rubles (approximately 360 USD).
Additionally, services provided by authorized mining infrastructure operators will not be taxed on the territory of the Russian Federation.
Bitcoin is trading at historical highs against the ruble
The Federation Council's approval of the new cryptocurrency tax regime comes as Bitcoin (BTC) trades at historical highs against Russia's national currency, the ruble.
On November 27, the price of Bitcoin reached a new historical high against the ruble, reaching about 11 million rubles, according to data from Coinbase.
The price of Bitcoin in Russian rubles, 30-day price chart. Source: Coinbase
This price surge is partly driven by the global rise of Bitcoin, with prices nearly reaching 100,000 USD and the weakening of the ruble against the US dollar.
On November 27, the price of the US dollar against the ruble reached a multi-year high of 113 rubles per USD, a level that was temporarily seen in March 2022 after Russia announced a 'special military operation' in Ukraine.
According to data from TradingView, 1 USD is currently worth 111 rubles, an increase of 25% compared to last year.
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