Today, Russian President Vladimir Putin approved new legislation establishing a taxation framework for cryptocurrencies, recognizing digital assets like Bitcoin as property.
The announcement was made official by its publication on the Russian legal acts website. The bill had already received approval from the Federation Council.
The bill classifies crypto as property under the Russian Internal Revenue Code, implementing a tax framework for the digital asset industry. Notably, the legislation exempts cryptocurrency mining and sales from value-added tax (VAT), creating a distinctive regulatory approach to digital asset operations.
Bitcoin Mining Income Taxation
The new law introduces tax obligations and reporting requirements for cryptocurrency mining companies. Mining income will be taxed as personal income, with a 13% tax rate. Starting in 2025, this rate will rise to 15% for annual incomes exceeding 2.4 million rubles (approximately $28,800).
Additionally, mining firms will be required to report user data to the authorities, tightening compliance measures. The law’s passage through both houses of parliament marks a significant milestone in Russia’s regulatory efforts.
Trials for Cross-Border Transactions
In September, Russia launched a trial aimed at testing cryptocurrency use in exchanges and cross-border transactions. According to reports, these trials utilize the National Payment Card System to facilitate exchanges between rubles and cryptocurrencies.
The trials sought to address payment challenges faced by Russian businesses amid heightened international sanctions. These sanctions have increasingly restricted financial transactions, making traditional payment methods difficult for local and international companies.
Legalizing Crypto Mining
Meanwhile, Russian President Vladimir Putin signed a law legalizing cryptocurrency mining in August. Under the law, only Russian legal entities and individual entrepreneurs registered with the government may engage in mining activities.
However, individual miners are exempt from this requirement if their energy consumption remains within government-defined limits.
The legislation also allows foreign digital financial assets to be traded on Russian crypto platforms, with the Bank of Russia retaining the authority to restrict listings if they threaten the nation’s financial stability.
In a government meeting on economic matters, Putin emphasized the urgency of creating a legal framework, building infrastructure, and fostering an environment conducive to circulating cryptocurrencies, highlighting their potential for economic growth.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
