The post War, Sanctions, and Crypto: Putin’s Economic Balancing Act appeared on BitcoinEthereumNews.com.

The economic activity in Russia is experiencing instability. In the face of mounting pressure, President Vladimir Putin is turning to cryptocurrency. On November 29, he signed a law officially classifying crypto as property. The Russian ruble fell to its lowest level in more than two and a half years on November 27. The Russian currency broke below 110 against the greenback for the first time since March 2022. Additionally, it also declined to a historical low versus China’s yuan by dropping below 15. This crash coincides with rising tensions with the war in Ukraine and progressively tightening sanctions. – Advertisement – Even the stock market has not been better off, to say the least. It has dipped almost 20% as the year runs out. People are withdrawing their investments with such and shifting their funds to more secure bank accounts. BCS brokerage firm commented that the situation is a panic in an environment of uncertainty. The Russian ruble and stock markets continue to slide, and everyone is now waiting for the actions of Russia’s financial experts. Russia Turns to Crypto for Stability Putin’s move could allow Russia to bypass sanctions and conduct trade outside the traditional financial system. – Advertisement – The law brings significant changes. Crypto miners will no longer pay VAT on their activities. Income from mining is now classified as “income in kind” and taxed at standard rates. Personal earnings up to 2.4 million rubles ($22,000) face a 13% tax, while larger amounts are taxed at 15%. Corporate taxes stay at 25%. Miners must report their operations to the tax authorities or risk fines. These new rules come just weeks after another law regulating crypto mining took effect. That law set energy consumption caps and allowed certain companies to make international payments through the Bank of Russia.…

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Filed under: News - @ December 1, 2024 11:15 pm