Originally published on: November 28, 2024
The Russian government has swiftly approved a new cryptocurrency tax law as Bitcoin continues to surge against the national currency, the ruble. This new legislation imposes taxes on cryptocurrency transactions, treating digital currencies as property and subjecting them to a 13%-15% personal income tax on sales. However, Russian crypto miners are exempt from value-added tax (VAT) on mined coins.
After passing through three readings in the State Duma, the bill received approval from the Federation Council and now awaits President Vladimir Putin’s signature to become law. Once signed, it will be effective upon publication.
Under this new law, digital currencies used in foreign trade agreements within Russia’s legal crypto regime are recognized as property. Mining operators must report information on crypto-mining services to local authorities for tax control purposes, with penalties of 40,000 rubles for non-compliance.
Meanwhile, authorized mining infrastructure services will be tax-exempt within Russia. This move by the Federation Council coincides with Bitcoin’s record highs against the ruble, reaching approximately 11 million rubles on November 27.
The surge in Bitcoin’s price is attributed to its global rise, nearing $100,000, and the ruble’s depreciation against the US dollar. The dollar hit a multiyear high of 113 rubles per dollar on the same day, up 25% in the past year. This financial landscape underscores the importance of understanding the implications of these crypto developments for investors and traders.
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