After the Federation Council, the upper chamber of the Russian parliament passed a comprehensive tax law targeting crypto transactions and mining, Russia is set to introduce cryptocurrency regulation.
The law recognizes digital currency as property, and taxes crypto transactions between 13%-15%.
The miners are also exempted from VAT on their coins.
The bill has already been passed through three readings by the State Duma and now awaits President Vladimir Putin to sign it into law.
The legislation, once enacted will impose new tax obligations on crypto traders and offer exemptions for authorized mining infrastructure operators.
Russia now taxes crypto transactions: What does this mean for Russian users?
The bill is a new law that represents a major overhaul in Russia’s cryptocurrency policy. It clarifies the legal status of crypto assets and introduces structured tax obligations.
The law ends years of regulatory uncertainty by officially recognising cryptocurrencies as real property.
According to the proposed tax framework for cryptocurrency transactions, individuals will pay tax at a rate between 13% and 15% on earnings of up to 2.4 millions rubles ($21210 approx.) per year.
Mining companies are also required to report their activities in strict detail.
Local tax authorities must receive detailed information from operators of crypto-mining equipment.
If you fail to comply, you could be fined up to 40,000 rubles ($360).
Miners who conduct transactions on authorized platforms will also be eligible for VAT exemptions.
The regulatory tightening also applies to small-scale mining operations. The government has imposed an energy consumption limit for unregistered mines of 6,000 Kilowatt-hours a month.
Economic Context – Bitcoin’s Surge & the Rubble’s Decline
The timing of this legislation is noteworthy as it coincides perfectly with Bitcoin’s explosive rise against the Ruble.
Bitcoin’s historic high was 11 million rubles on November 27. This was due to a combination of a global rally of cryptocurrency, which is approaching the $100,000 mark, and the continued depreciation of the ruble against the U.S. Dollar.
Dollar-ruble rates have reached a record high of 113 roubles per dollar, a drop of 25% in the value.
This decline is largely due to the economic challenges that continue, which are exacerbated by Western sanction and geopolitical tensions.
This bill, once it is signed into law by the Russian President, will mark a significant shift in Russia’s attitude towards cryptocurrency. It introduces a structured regulatory framework that could boost institution confidence in this sector.
According to MegaFon , the Russian internet traffic has increased by 8% to major crypto exchanges due to the Bitcoin price’s 45% increase in November.
The trend is consistent with the global increase in interest in cryptocurrency, as visits to top 20 global exchanges are up 8-10% from October.
Russian users account for approximately 27-30% total traffic on these platforms. Exchanges such as Deribit reported a 126% increase in traffic, while HTX, KuCoin and HTX saw traffic growth of 24% and 23.3% respectively.
Some platforms, such as Gate.io or Upbit, have seen traffic decreases.
The increase is also linked to the new crypto-mining laws that were enacted in November.
limits non-commercial mining to 6,000 kWh per month.
