New Landscape in International Cryptocurrency Struggle
As Trump is set to take office in January next year, his campaign team has revealed that Trump plans to accumulate 1 million Bitcoins over the next five years and designate them as a strategic reserve asset. This could not only further stimulate the domestic cryptocurrency market in the U.S. but also, from the perspective of international financial struggle, make Trump's cryptocurrency policy once again the core focus of the U.S.-Russia competition.
Recently, Russian President Putin signed a new cryptocurrency tax law, which not only first explicitly categorizes Bitcoin as an 'asset' but also abolishes the value-added tax (VAT) on cryptocurrency transactions.
Russia: Bitcoin officially incorporated into the financial system
According to a new bill passed by the Federation Council of the Russian parliament, Russia has established a comprehensive tax framework for cryptocurrency trading and mining activities. In addition to exempting value-added tax on cryptocurrency transactions, it also specifies individual income tax rates.
Starting in 2025, individuals with an annual income exceeding 2.4 million rubles (approximately $25,000) from digital currencies will need to pay a 15% personal income tax, while those below this standard will maintain a 13% rate.
In addition, cryptocurrency mining income will be taxed based on market value, and mining companies are required to report customer information to tax authorities to increase transparency and combat illegal activities.
The Russian government has also restricted unregistered individuals from consuming electricity for mining, limiting it to no more than 6,000 kilowatts per month to prevent illegal mining and protect household electricity resources.
However, the restrictive clauses of the new Russian bill have also sparked some criticism. For instance, the requirement for mining companies to disclose customer information may reduce the confidence of international crypto firms in the Russian market. Additionally, the high tax rates imposed on mining activities might limit the entry of new players, further exacerbating market monopoly risks.
Russia's Strategic Calculations
A series of cryptocurrency policies promoted by Russia is seen as an important part of the country's 'de-dollarization' strategy. As BRICS countries accelerate their de-dollarization plans, decentralized assets like Bitcoin are now viewed as important tools for weakening dollar hegemony.
Under the pressure of financial sanctions from Western countries, Russia hopes to establish an economically independent system relative to the dollar through Bitcoin and other crypto assets. This can be seen from the recent involvement of Russia's sovereign wealth fund in Bitcoin mining investments, indicating that the Russian government is recognizing the financial and strategic value of digital currencies.
The Initial Emergence of a New Global Cryptocurrency Landscape
Interestingly, Trump's cryptocurrency policy forms an interesting contrast with Russia's latest legislation: both sides seem to be creating a friendlier environment for the cryptocurrency industry through legislation, but their strategic intentions are completely different.
For Russia, cryptocurrencies are tools to counter financial sanctions from Western countries; for Trump, cryptocurrencies are potential weapons to strengthen dollar hegemony.
In any case, Russia's new tax law and the future policy changes in the United States under Trump have once again placed the global cryptocurrency market at the center of attention.
Some analysts believe that the policy directions of these two superpowers may prompt other countries to reassess the status of cryptocurrencies. If BRICS countries are included, the world is beginning to pay attention to the strategic status of digital assets like Bitcoin. It is expected to create huge market demand for Bitcoin, becoming the biggest positive factor in this round of bull market.
[Disclaimer] The market has risks; investment should be cautious. Analysts' views are for reference only. Users should consider more diverse indicators to determine whether to invest and consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Invest at your own risk.
'A New Landscape in Cryptocurrency Struggle! Putin Signs Cryptocurrency Tax Law, Russia Recognizes Bitcoin as an Asset' This article was first published in 'Crypto City'
