Major Changes in Cryptocurrency Regulation
Russia has taken a significant step toward regulating digital currencies with the adoption of a new crypto tax law. This legislation, approved by the Federation Council, the upper chamber of parliament, follows prior approval by the State Duma and awaits President Vladimir Putin's signature to become law. The new rules introduce a series of changes affecting mining, tax obligations, and the legal status of cryptocurrencies.
Digital Currencies Classified as Assets
Under the new law, digital currencies, including those used in experimental legal regimes, are classified as assets under Russia's tax code. This classification exempts mining and digital currency transactions from value-added tax (VAT), significantly easing financial obligations for entities in this sector. Additionally, services provided by authorized organizations facilitating these transactions will also be VAT-exempt.
Mandatory Reporting and Taxation of Mining Income
The new legislation requires mining infrastructure operators to report user data to tax authorities. Income from cryptocurrency mining will be treated as taxable income, with individuals paying an income tax rate of 13%. For annual incomes exceeding 2.4 million rubles, the rate will rise to 15% starting in 2025. Businesses engaged in mining activities will be subject to the standard corporate income tax rate.
Tax Framework and Broader Regulatory Goals
The law specifies that mining revenues will be taxed based on the value of digital assets on international exchanges. This measure is part of a broader strategy to create a transparent and legally sound framework for cryptocurrencies. The goal is not only to ensure controlled growth in the sector but also to contribute to national revenues and align regulations with the country’s economic priorities.
A Key Step in Russia’s Crypto Regulation Strategy
This legislative move reflects Russia's efforts to establish comprehensive control over the digital currency market amid increasing global scrutiny of cryptocurrencies. With the adoption of this law, Russia aims to create a stable and predictable environment for cryptocurrency investors and entrepreneurs while promoting sustainable growth in the industry aligned with national interests.
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