The surge in prices, adoption, and usage of crypto has become a mode through which the government of a nation can earn taxes. Dozens of nations have imposed severe fines on digital assets, and some of them have imposed fewer taxes to help it become widespread.
In a most recent development, the Finance Ministry of Russia has announced that it has recognized digital currencies as properties in order to impose taxes on them.
In the statement, the higher official of the ministry notes that the amended bill will also introduce rules for the taxation of crypto mining income and expenses. The rules will also cover the purchase and sale of the mined digital currencies as well as the responsibilities of mining infrastructure operators related to tax control.
The Government of Russia has passed amendments to the bill on the taxation of income and expenditure from the mining, purchase, and sale of digital assets.
The new rules are introduced to bring crypto under a clearer tax framework that has been pending for several years. Following the amendment, digital currency will now be defined as property for taxation purposes.
It is worth noting that income generated from digital assets mining will be subject to income tax based on its market value at the time when credited to a wallet.
In this case, the crypto’s closing price on major exchanges that particular day. Miners will, however, be allowed to deduct mining-related expenditures such as hardware depreciation and electricity costs.
Taxation to Affect the Crypto Market of Russia!
The increased taxes and regulations for cryptocurrencies might hinder the surging path of the digital assets market in Russia, which is one of the most preferred locations for crypto miners.
In the past few years, the number of cryptocurrency users in Russia nearing the region has skyrocketed and is expected to reach new heights by the end of the next year.
After Bitcoin’s fourth halving miners reported a surge in revenue from mining which helped them to book huge profits when Bitcoin crossed its ATH reaching above the mark of $93k.
On September 20, the Federal Security Service of Russia announced the detention of an individual accused of assisting Ukraine and facilitating cryptocurrency transactions.
The detainee’s identity remains undisclosed but faces charges under Article 275 of the Russian Criminal Code, which encompasses acts of high treason.
Russian authorities have intensified efforts to apprehend and prosecute individuals aiding Ukraine amid the ongoing conflict. Meanwhile, the prolonged war has significantly impacted Ukraine, driving its development to historically low levels in recent years.
Sberbank, a prominent Russian bank, has revealed plans to execute its first pilot cryptocurrency transaction for foreign economic activities by the end of 2024.
The announcement, initially reported by Tass, quoted Anatoly Popov, a senior executive on the bank’s management board, stating, “We recognize the significance of using stablecoins or cryptocurrencies in foreign economic transactions. We are currently ironing out regulatory details with the Bank of Russia and anticipate completing the first transactions before the year’s end.”
