Russia officially recognizes Bitcoin and cryptocurrencies as assets
Russia has officially recognized Bitcoin and other cryptocurrencies as legal assets through a new tax law signed by President Vladimir Putin. This law not only defines cryptocurrency as an asset but also provides specific tax regulations for mining and trading activities. According to the provisions of the law, transactions involving cryptocurrencies will not be subject to value-added tax (VAT), while income from these activities will be included in the general tax base with a personal income tax rate of 13% or 15% depending on annual income.
The new law prohibits domestic cryptocurrency transactions but allows the use of cryptocurrencies in cross-border transactions without incurring taxes, in order to support organizations conducting cryptocurrency transactions. Additionally, this law also requires cryptocurrency mining infrastructure operators to report taxes periodically and imposes penalties for non-compliance.
This move is seen as part of Russia's efforts to enhance competitiveness and ensure transparency in the digital finance sector, while also responding to Western sanctions. The law will take effect from January 1, 2025, marking a significant step forward in cryptocurrency regulation in Russia.
