New Cryptocurrency Tax Framework in Russia

- Russia is moving closer to implementing a comprehensive legal framework for taxing cryptocurrency transactions and mining. The Federation Council approved the federal bill on November 27, after it was approved by the State Duma.

- The new law classifies digital currency as an asset and exempts value-added tax (VAT) for cryptocurrency transactions. Income from the sale of cryptocurrency will be subject to personal income tax ranging from 13% to 15%, similar to securities transactions.

- Cryptocurrency mining is also exempt from VAT but must report activities to the tax authorities. Non-compliance will incur a fine of 40,000 rubles (~360 USD). 🪙

- The bill also recognizes the use of digital currency in international trade agreements. These measures aim to formalize Russia's cryptocurrency economy, providing clarity on regulations and oversight.