Russia’s Federation Council has approved a new taxation framework for digital currencies.
Importantly, the legislative comes as Bitcoin reaches unprecedented highs against the Russian ruble.
On 27 November 2024, Russia’s upper house of Parliament, approved a federal bill that introduces new taxes on cryptocurrency transactions.
This bill marks a pivotal shift in how digital currencies are treated under Russian law, recognizing them as property and setting up a structured taxation system.
JUST IN:
Russia to treat #Bitcoin as property and exempt from VAT tax after bill passed parliament’s upper house.
It now awaits President Putin’s signature. pic.twitter.com/A8AeXu24mm
— Bitcoin Archive (@BTC_Archive) November 28, 2024
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Russia Imposes Personal Income Tax Of 13% – 15% On Crypto
The new legislation imposes a personal income tax ranging from 13% to 15% on cryptocurrency sales. Is this Russia’s efforts to regulate and integrate digital currencies into its financial system?
Notably, the bill exempts Russian crypto miners from value-added tax (VAT) on mined coins. This is expected to encourage domestic mining activities.
Furthermore, mining infrastructure operators are required to report their activities to local authorities. Non-compliance with these reporting obligations will result in fines of 40,000 rubles (approximately $360).
The bill successfully passed three readings in the State Duma before receiving approval from the Federation Council. It now awaits the signature of President Vladimir Putin to become law. Once signed, it will be enacted upon official publication.
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Bitcoin’s All-Time High Against the Ruble
The approval of this new taxation framework coincides with Bitcoin trading at all-time high levels against the Russian ruble.
Bitcoin’s price surged to approximately 11 million rubles, driven by both global market trends and local economic factors.
The ruble has been depreciating against major currencies like the US dollar. As of 27 November 2024, the exchange rate was at a multiyear high of 113 rubles per dollar. This depreciation is partly attributed to ongoing geopolitical tensions and economic sanctions affecting Russia.
Looking ahead, Russia’s approach to cryptocurrency regulation will be closely watched by other nations grappling with similar issues.
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