Russian President Vladimir Putin signed a law that modifies the tax regime for Mining and trading Bitcoin (BTC) and cryptocurrencies, officially converting them into property under the Tax Code of the Russian Federation.
This law, which was approved this week by the State Duma and the Federation Council, public officially on Friday, November 29, marking a significant milestone in Cryptocurrency regulation in Russia.
The new regulations introduce amendments to the Tax Code to establish details on the taxation of digital currency transactions. According to the text of the law, digital currency is now recognized as “Property.” This implies that mining infrastructure operators must inform the tax authorities about the activity carried out by their clients, thus facilitating fiscal control over these operations.
Regarding taxation, the law establishes that operations related to mining and the sale of cryptocurrencies They will not be subject to Value Added Tax (VAT). However, profits from the purchase or sale of these digital assets will be taxed under a personal tax system with two scales.
The initial tax rate will be 13% for most consumers, but this will increase to 15% for those with an annual income of more than 2.4 million rubles (about $22,000) starting in 2025.
This legislation is part of a series of efforts by Russia to advance cryptocurrency regulation, especially in the context of economic sanctions imposed by the West due to the invasion of Ukraine. Recognition of cryptocurrencies as property allows Russia explore economic and financial alternatives in an increasingly restrictive global environment.
In August of this year, Putin also signed a law legalizing cryptocurrency mining, which came into effect on November 1as reported by CriptoNoticias. This legislation establishes that the government, in coordination with the Central Bank, will determine the requirements so that individuals and entities can participate in the Bitcoin mining. Additionally, the government was given the power to ban mining in certain regions of the Russian Federation if they deem it necessary.
The measure of recognizing cryptocurrencies as property and the established tax framework reflect an adaptation of the Russian legal system to the growing importance of digital and financial technologies in the global economy.
This law completes a broader regulatory framework that Russia is developing to manage and regulate the use of cryptocurrenciesthus preparing for a future where they can play a more significant role in international and national transactions.
This article was created using artificial intelligence and edited by a human Editor.
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