Earlier this week, Russia reportedly approved a cryptocurrency-focused tax law which recognizes Bitcoin (BTC) and crypto-assets as property (somewhat similar to what Chinese courts has determined several years back).
The legislation, which was reportedly approved on November 27, 2024, formally acknowledges Bitcoin / other virtual currencies as a type of property while also requiring a personal income tax (of anywhere between 13 and 15 percent) on any crypto transactions.
The government in Russia appears to be focused on quickly enforcing taxes on new cryptocurrencies as the Bitcoin and crypto market continues to reach all-time records against the Russian ruble.
Russia’s Federation Council, the nation’s upper house of parliament, reportedly approved the new bill, which officially requires applicable taxes on crypto-related financial transactions.
The legislation is said to exempt Bitcoin and crypto mining operations in the country from VAT on mined digital currencies.
The latest bill has reportedly cleared three different readings/reviews in the State Duma which is prior to gaining approval from the Federation Council.
With the signature of Russian President Vladimir Putin, the legislation will become official law.
As noted in the legislation documents, virtual currencies such as cryptos used as a type of payment under foreign trade agreements within Russia’s legal crypto framework — is to be formally recognized as a type of property.
As mentioned in the announcement from this past week, Russia’s mining infrastructure operators are required to report pertinent details regarding the provision of cryptocurrency mining services to relevant authorities.
The update also clarified that services by licensed crypto mining infrastructure providers will not be taxed (on the legally recognized territory of Russia).
The Federation Council’s update on cryptocurrency taxes has been announced when Bitcoin (BTC) is trying to break the $100,000 mark. There’s reportedly a close to 80% chance that Bitcoin will surge past $100,000 by January 1, 2025, according to a research analyst.
