Putin Signs Law Recognizing Crypto as Property

Russia has taken a significant step towards embracing cryptocurrencies by recognizing Bitcoin as legal property for trade. This move is part of a new crypto taxation framework approved by the Russian Federation Council .

Here are the key implications of this development:

- Recognition as Property: Bitcoin and other digital currencies are now officially recognized as property in Russia, allowing individuals and businesses to trade and invest in them with greater clarity and security.

- Taxation Framework: The new framework introduces a 13% to 15% personal income tax on profits from cryptocurrency sales. However, mined coins are exempt from value-added tax (VAT).

- Mining Regulations: Crypto mining operators are required to report their activities to local authorities, with fines of up to 40,000 rubles (approximately $360) for non-compliance.

- Impact on Bitcoin Price: The recognition of Bitcoin as legal property has coincided with a surge in its price against the Russian ruble, reaching an all-time high of approximately 11 million rubles.

Overall, Russia's recognition of Bitcoin as legal property marks a significant milestone in the country's growing acceptance of cryptocurrencies.

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