Russia advances crypto tax bill, awaiting Putin’s signature

Russia is one step closer to implementing a comprehensive framework for taxing cryptocurrency transactions and mining. Its Federation Council approved a federal bill on November 27, following its passage in the State Duma.

The legislation, which awaits President Vladimir Putin’s signature to become law, classifies digital currencies as property and exempts crypto transactions from value-added tax (VAT).

New cryptographic framework in Russia

Under the new law, proceeds from cryptocurrency sales will be subject to a personal income tax of 13% to 15%, aligning with tax rates for securities transactions. Crypto mining operators, however, are also exempt from VAT on mined coins, but are required to report their activities to the tax authorities. Income derived from mining will be taxed based on the market value of the digital assets at the time of receipt.

Failure to comply with reporting requirements will result in fines of 40,000 rubles, roughly $360. The move comes as Bitcoin hits record highs against the Russian ruble, reflecting growing interest in digital currencies in the nation.

The bill also recognizes the use of digital currencies in foreign trade agreements under Russia’s experimental crypto legal framework.

In particular, the services of licensed mining infrastructure operators will remain tax-free in the country. Once enacted, these measures aim to formalize Russia’s crypto-economy, providing regulatory clarity while introducing oversight to align with the government’s fiscal goals.

The latest development comes a week after officials announced plans to slow cryptocurrency mining this winter to avoid power shortages.

As previously reported, mining is suspended in Siberian regions such as Irkutsk and Buryatia from December to mid-March and will face similar seasonal bans until 2031.

Year-round bans will come into effect in 2024 in the North Caucasus and Russian-controlled areas of Ukraine, including Donetsk and Kherson. Deputy Prime Minister Alexander Novak’s government commission approved the move.

Russia’s Crypto Exchange Traffic Increases 8%

Over the past month, Bitcoin has witnessed a massive rally near $100,000, spurring global excitement in the cryptocurrency market, including notable activity in Russia.

Research by MegaFon, a leading Russian telecommunications provider, revealed that internet traffic on the country’s leading cryptocurrency exchanges grew by 8% in early November. In addition to the price of Bitcoin, this increase was also driven in part by recent changes in local cryptocurrency regulations.

This reflects a global trend, as MegaFon’s findings indicate an 8% to 10% month-over-month increase in web visits to the top 20 crypto exchanges. Russian users accounted for 27% to 30% of the total traffic of these platforms, which highlights their growing interest in the evolution of the crypto market.

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