Russia is poised to introduce landmark cryptocurrency regulations after the Federation Council, the upper house of its parliament, approved a comprehensive tax bill aimed at crypto transactions and mining activities.
The legislation recognizes digital currencies as property and imposes a 13%-15% tax on crypto transactions.
It also exempts miners from value-added tax (VAT) on mined coins.
The bill, which had already passed three readings in the State Duma, now awaits President Vladimir Putin’s signature to become law.
Once enacted, the legislation will usher in new tax obligations for crypto traders while offering exemptions to authorized mining infrastructure operators.
Russia Now Taxing Crypto Transactions: How Does This Affect Russian Users?
The new bill represents a sweeping overhaul of Russia’s approach to cryptocurrency, clarifying the legal status of digital assets and imposing structured tax obligations.
The legislation ends years of regulatory ambiguity by officially recognizing cryptocurrencies as property.
Under the proposed tax framework, individual income from cryptocurrency transactions will be taxed at a rate of 13% for annual earnings up to 2.4 million rubles (approximately $21,210) and 15% for earnings above that threshold.
The legislation also places strict reporting requirements on mining companies.
Operators of crypto-mining infrastructure must provide detailed information about their activities to local tax authorities.
Any failure to comply could result in fines of up to 40,000 rubles (around $360).
Additionally, mining income will be taxed based on the market value of cryptocurrencies at the time they are received, with VAT exemptions offered to miners conducting transactions through authorized platforms.
This regulatory tightening extends to small-scale miners as well. Earlier this month, the government imposed energy consumption limits of 6,000 kilowatt-hours per month on unregistered mining operations.
Economic Context: Bitcoin’s Surge and the Ruble’s Decline
This legislation’s timing is particularly noteworthy, as it coincides with Bitcoin’s meteoric rise against the Ruble.
On November 27, Bitcoin reached a historic high of 11 million rubles per coin, driven by a combination of the cryptocurrency’s global rally—approaching the $100,000 mark—and the ruble’s continued depreciation against the U.S. dollar.
Source: TrandingView / USDRUB
The ruble’s value has dropped 25% over the past year, with the dollar-ruble exchange rate hitting a multi-year high of 113 rubles per dollar.
This decline has been largely attributed to the ongoing economic challenges exacerbated by Western sanctions and geopolitical tensions.
Once signed into law, this bill will represent a major shift in Russia’s approach to cryptocurrency, introducing a structured regulatory environment that could boost institutional confidence in the sector.
Notable, the Bitcoin’s 45% price surge in November, climbing from $68,000 to $99,000, along with Russia’s new crypto mining regulations, has fueled an 8% rise in Russian internet traffic to major crypto exchanges, according to telecom giant MegaFon.
This aligns with a global trend of increased interest in cryptocurrencies, with visits to the top 20 global exchanges up 8-10% compared to October.
Russian users now account for roughly 27-30% of total traffic to these platforms, with significant growth seen on exchanges like Deribit, which reported a 126% spike, and HTX and KuCoin, which saw traffic increases of 24% and 23%, respectively.
However, some platforms like Gate.io and Upbit experienced traffic declines.
The surge is also tied to the country’s new crypto-mining law, enacted on November 1.
The law restricts mining to registered entrepreneurs and organizations and caps non-commercial mining at 6,000 kWh monthly.
Starting December 1, temporary regional mining bans will last until March 2025 due to electricity shortages.
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