Russian authorities tighten cryptocurrency taxation as Bitcoin achieves record highs against the ruble.
New Cryptocurrency Taxes in Russia
The Federation Council of Russia has approved a federal bill introducing new taxes on cryptocurrency transactions. The legislation recognizes digital currencies as property and imposes a personal income tax of 13–15% on cryptocurrency sales. Russian crypto miners are also exempt from VAT on mined coins.
Reporting for Crypto Miners
According to the bill, digital currency, including those used as means of payment under foreign trade agreements within Russia's legal crypto regime, is recognized as property. For tax control purposes, Russia's mining infrastructure operators must report relevant information about their crypto mining services to the local authorities. Failure to comply will result in fines of 40,000 rubles (approximately $360). Additionally, services by authorized mining infrastructure operators will not be subject to taxation in Russia.
Bitcoin's Historic High Against the Ruble
The approval of the new crypto taxation regime by the Federation Council comes as Bitcoin trades at record highs against the ruble. On November 27, Bitcoin reached a new all-time high against the ruble, amounting to approximately 11 million rubles. This rally is partly driven by Bitcoin's global rise, nearing $100,000, and the ruble's depreciation against the US dollar. On November 27, the US dollar price against the ruble also hit a multiyear high of 113 rubles per dollar.
The implementation of new tax regulations on Russia's crypto industry may significantly impact the local market, especially given the ruble's volatility and Bitcoin's global growth.
