President Vladimir Putin has signed into law a new framework regulating the taxation of Bitcoin and cryptocurrency mining and trading in Russia.
The legislation amends the country’s Tax Code to classify digital currency as property.
Taxation
The law exempts cryptocurrency mining and sales from value-added tax (VAT).
However, mining operators are now required to report their activities to local authorities or face fines of 40,000 rubles ($380).
Cryptocurrency trading will be subject to income tax, with a 13% rate for earnings up to 2.4 million rubles ($22,300) and 15% for higher income brackets.
Corporate entities will pay the standard corporate tax rate of 25%, starting in 2024.
Most provisions of the law take effect immediately, with some delayed for administrative rollout.
Mining
Russia, a global leader in cryptocurrency mining, anticipates earning approximately 200 billion rubles ($2 billion) annually from miners under the new regulations.
Database of miners
This legislative move follows the establishment of a database for government-approved large-scale miners, introduced on November 1.
The law builds on a broader cryptocurrency initiative in Russia, including a Central Bank pilot project for cross-border transactions.
