Originally published on: November 28, 2024
As Bitcoin continues to surge against the Russian ruble, the Russian government is taking swift action to implement new cryptocurrency taxes. The Federation Council, Russia’s upper house of parliament, has officially approved a federal bill that imposes taxes on cryptocurrency transactions.
Under this new legislation, digital currencies are now recognized as property, subjecting them to a 13%–15% personal income tax on sales. However, Russian crypto miners are exempt from value-added tax (VAT) on the coins they mine.
The bill passed through three readings in the State Duma before receiving approval from the Federation Council. It now awaits President Vladimir Putin’s signature to become law, with its enactment taking effect upon official publication.
For tax compliance, mining infrastructure operators in Russia must report information on crypto-mining services to local authorities. Failure to do so could result in fines of 40,000 rubles ($360). Nevertheless, services provided by authorized mining infrastructure operators will not be taxed within Russian territory.
The approval of this new crypto taxation system by the Federation Council coincides with Bitcoin’s record-breaking performance against the ruble. On November 27, Bitcoin reached an all-time high against the ruble, valued at approximately 11 million rubles according to Coinbase data.
This rally is driven by Bitcoin’s global surge towards $100,000 and the ruble’s depreciation against the US dollar. On the same day, the US dollar hit a multiyear high of 113 rubles per dollar, following Russia’s military actions in Ukraine earlier in the year.
With the approval of these new tax laws, Russia is taking significant steps towards regulating the cryptocurrency market while recognizing the value of digital assets as property. As Bitcoin continues to make headlines and break records, the future of cryptocurrency in Russia remains a topic of interest and debate.