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The Russian Federation Council’s approval of the new crypto taxation regime comes amid Bitcoin hitting all-time highs against Russia’s national currency, the ruble.
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The Russian government is rushing to enforce new cryptocurrency taxes as Bitcoin smashes all-time highs against Russia’s national currency, the ruble.
Russia’s Federation Council, the country’s upper house of parliament, has approved a federal bill introducing new taxes on cryptocurrency transactions.
The legislation, approved on Nov. 27, recognizes digital currencies as property and imposes a 13%–15% personal income tax on cryptocurrency sales. It also exempts Russian crypto miners from value-added tax (VAT) on mined coins.
Stages of consideration of the bill No. 1065710-7. Source: Sozd.duma.gov.ru
The bill passed three readings in the State Duma before gaining approval from the Federation Council. It now awaits the signature of President Vladimir Putin to become law. Once signed, it will take effect upon official publication.
Russian crypto miners must report activity to the government
According to the bill, digital currency — including digital currency used as a means of payment under foreign trade agreements within Russia’s experimental legal crypto regime — is recognized as property.
For tax control purposes, Russia’s mining infrastructure operators must report relevant information about the provision of crypto mining services to local authorities.
Failure to comply will result in fines of 40,000 rubles (approximately $360).
Additionally, services by authorized mining infrastructure operators will not be subject to taxation on the territory of the Russian Federation.
Bitcoin is trading at all-time high levels against the ruble
The Federation Council’s approval of the new crypto taxation regime comes as Bitcoin (BTC) trades at all-time highs against Russia’s national currency, the ruble.
On Nov. 27, the price of Bitcoin hit a new all-time high against the ruble, reaching roughly 11 million rubles, according to data from Coinbase.
Bitcoin price in Russian rubles, 30-day price chart. Source: Coinbase
This rally is partly fueled by Bitcoin’s global rise, with prices nearing $100,000 and the ruble’s depreciation against the United States dollar.
Related: Russia plans to restrict crypto mining in 13 regions to save electricity
On Nov. 27, the price of the US dollar against the ruble hit a multiyear high of 113 rubles per dollar, which was previously briefly seen in March 2022 following Russia’s announcement of a “special military operation” in Ukraine.
According to TradingView data, $1 is currently worth 111 rubles, up 25% over the past year.
Magazine: Crypto has 4 years to grow so big ‘no one can shut it down’: Kain Warwick, Infinex
This article first appeared at Cointelegraph.com News
