YEREVAN (CoinChapter.com) — Russia’s Federation Council has approved a tax bill for cryptocurrency transactions and mining, awaiting President Vladimir Putin’s signature. The bill establishes clear tax rates for trading and mining while exempting certain transactions from VAT.
Crypto Transactions Get VAT Exemption
The bill exempts cryptocurrency transactions from value-added tax (VAT), simplifying taxation for crypto users. Under the amendments, virtual digital currencies are now classified as property under Russian law.
Tax rates on cryptocurrency income range from 13% to 15%, similar to taxes on securities. This new tax framework applies to individuals and businesses engaged in cryptocurrency trading. According to Interfax, the rates aim to align crypto taxation with traditional financial practices.
Reporting Requirements for Crypto Mining in Russia
Mining operators must report client information to tax authorities. Income from mining activities will be taxed based on its market value at the time of receipt. These measures ensure greater oversight of mining operations.
The bill also limits unregistered individuals from mining bitcoin. Power consumption for such activities is capped at 6,000 kilowatt-hours per month. Violations of these regulations may result in fines of up to RUB 40,000.
Legislative Process and Broader Context
The Federation Council approved the bill after three readings in the State Duma. Once signed, the law will enforce stricter compliance and reporting for crypto activities.
President Putin has emphasized the importance of digital assets for reducing reliance on the U.S. dollar in international trade. Earlier this year, he approved the Digital Ruble Bill, introducing a central bank digital currency (CBDC) to modernize payment systems.
Russia has also collaborated with BRICS nations, including China, Brazil, and South Africa, on a digital payment network using cryptocurrencies. These steps align with the country’s strategy to integrate digital assets into its economy while maintaining regulatory control.
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