The post Russia Advances Crypto Taxation Bill, Awaiting Putin’s Signature appeared on BitcoinEthereumNews.com.

Russia is one step closer to implementing a comprehensive framework for taxing cryptocurrency transactions and mining. Its Federation Council approved a federal bill on November 27, following its passage in the State Duma. The legislation, which awaits President Vladimir Putin’s signature to become law, classifies digital currencies as property and exempts crypto transactions from value-added tax (VAT). New Crypto Framework in Russia Under the new law, income from cryptocurrency sales will be subject to a personal income tax of 13%- 15%, aligning with the tax rates for securities transactions. Crypto mining operators, however, are also exempt from VAT on mined coins but are required to report their activities to tax authorities. Income derived from mining will be taxed based on the market value of the digital assets at the time of receipt. Non-compliance with reporting requirements will result in fines of 40,000 rubles, approximately $360. This move comes as Bitcoin reaches record highs against the Russian ruble, reflecting a growing interest in digital currencies within the nation. The bill also recognizes the use of digital currencies in foreign trade agreements under Russia’s experimental legal crypto framework. Notably, authorized mining infrastructure operators’ services will remain tax-free within the country. Once enacted, these measures aim to formalize Russia’s crypto economy, providing regulatory clarity while introducing oversight to align with the government’s tax objectives. The latest development comes a week after officials announced plans to curb cryptocurrency mining this winter to prevent electricity shortages. As reported earlier, mining will be suspended in Siberian regions like Irkutsk and Buryatia from December to mid-March and face similar seasonal bans through 2031. Year-round bans will take effect in 2024 in the North Caucasus and Russian-controlled areas of Ukraine, including Donetsk and Kherson. Deputy Prime Minister Alexander Novak’s government commission approved the measure. Russia’s Crypto Exchange Traffic…

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Filed under: News - @ November 30, 2024 1:22 pm