On November 29, 2024, Russia took an unprecedented step by enacting the Law on Recognition of Digital Assets as Property, an initiative pushed by President Vladimir Putin. This legislation marks a turning point, formalizing cryptocurrencies within a detailed regulatory framework covering mining, taxation, and international trade. The law proposes a 25% corporate tax on mining starting in 2025 and allows the use of cryptocurrencies in foreign trade, which could redefine the rules of the economic game in an increasingly digital world.
For cryptocurrencies, this move is a double-edged sword. On one hand, it regulates and legitimizes transactions, attracting investors seeking legal clarity. On the other hand, high tax rates and strict controls could discourage mining and trading activity, especially in a sanctioned country like Russia. Moreover, by opening the door to their use in international trade, Moscow challenges the global financial system dominated by the dollar, which could further fragment the global economy and accelerate the adoption of cryptocurrencies in emerging markets.
On the global stage, the law could intensify geopolitical tensions. By using cryptocurrencies to evade sanctions, Russia is leveraging the decentralized advantages of these technologies, posing a direct challenge to Western powers. However, it also positions cryptocurrencies as a strategic economic instrument, demonstrating their potential to reshape economies and redistribute global financial power. This decision not only affects Russia but also redefines the landscape for investors, governments, and platforms like Binance, which must quickly adapt to this new reality.