Munzir HakimiTable of Contents
New Crypto Tax
Overview of Legislation
the Russian government is moving quickly to implement new taxes on cryptocurrency transactions. On November 27,a federal bill was approved that recognizes digital currencies as property and introduces a personal income tax ranging from 13% to 15% on crypto sales. Additionally,Russian miners will be exempt from value-added tax (VAT) on mined coins.
Key Provisions
- The legislation mandates that all digital currency, including those used in foreign trade agreements, is classified as property.
- mining operators must report their activities to local authorities; non-compliance could lead to fines of 40,000 rubles (approximately $360).
- Authorized mining services will not incur taxes within Russia.
Market Context
This legislative move coincides with Bitcoin reaching an all-time high against the ruble. As of November 27, Bitcoin’s price surged to about 11 million rubles, driven by its global rise and the depreciation of the ruble against the US dollar. The dollar recently hit a multiyear high at 113 rubles per dollar, reflecting significant economic shifts in Russia.
Final Thoughts
Summary Insights
The new crypto tax law marks a significant step for Russia in regulating digital currencies amidst rising market values. With Bitcoin trading at record highs against the national currency and miners facing new reporting requirements, this legislation could reshape how cryptocurrencies are treated in Russia.
