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Russia is making waves in the crypto world with a new tax bill that could change how mining and trading are handled. The Federation Council, the country’s upper house of parliament, has given the green light to the bill, which sets the stage for tighter regulations on digital currencies. All that’s left now is President Vladimir Putin’s signature to make it official.
Russia is making all the efforts to stay alive in the crypto game with clear policies and transparency, yet making money out of the crypto. This will help the country fight with economic challenges it faced in recent times with US sanctions. This came into effect with Trump’s winning the white house no country can afford to stay away from this trillion-dollar industry.
What’s in the Bill?
The bill is pretty straightforward. It treats digital currencies like property, which means they’re subject to taxes, but there’s a silver lining—crypto transactions will be exempt from value-added tax (VAT). Moreover, for the first time, cryptocurrencies will be officially recognized as “property” in Russia, clearing up longstanding legal uncertainties. The bill introduces a tiered tax system for crypto miners: those earning up to 2.4 million rubles (around $21,210) annually will pay a flat 13% tax, while higher earners will face a 15% tax rate.
While miners will be exempt from value-added tax (VAT) on mined tokens sold on exchanges, they’ll need to report operations to the Federal Tax Service (FTS). Non-compliance could result in fines of up to 40,000 rubles ($354). For miners, their income will be taxed based on the market value of the crypto when they receive it.
Mining Gets More Scrutiny
Crypto miners won’t escape the spotlight either. Mining companies will now have to report their clients’ information to tax authorities. On top of that, earlier this month, Russia decided to limit how much energy unregistered individuals can use for Bitcoin mining—no more than 6,000 kilowatt-hours a month. That’s like putting a cap on small-scale mining operations.
What’s Next?
With both the lower house (State Duma) and upper house backing the bill, it’s now up to President Putin as reported by Komsomolskaya Pravda. If signed into law, these rules could set the tone for how Russia handles crypto in the future. For now, crypto traders and miners in Russia will need to brace themselves for a more regulated environment.
Russia’s approach could signal a trend as governments worldwide figure out how to balance innovation and control in the crypto space.