Russia Embraces Cryptocurrency Legislation

In a groundbreaking move, Russian President Vladimir Putin has signed a new law that officially recognizes Bitcoin and other digital currencies as property within the country. This legislation, aimed at regulating the taxation of digital currencies, is set to take effect one month after its official publication, but not before the commencement of the next tax period.

The new law introduces significant tax implications for digital currency transactions. Notably, these transactions will not be subject to value-added tax (VAT). For individual traders, a progressive tax rate is established: incomes below 2.4 million rubles will be taxed at 13%, while those exceeding this amount will face a 15% tax rate. Furthermore, traders whose daily volume surpasses 100 billion rubles will be classified as foreign trading organizers, with a 25% tax rate imposed from 2025 onwards.

In addition to these measures, the law mandates that mining infrastructure operators must report client details to tax authorities. Failure to comply will result in a fine of 40,000 rubles.