Putin Recognizes Bitcoin and Cryptocurrency as Property in New Legislation
Bitcoin and Cryptocurrency Gain Legal Status in Russia
President Vladimir Putin has officially recognized Bitcoin and cryptocurrency as property, marking a pivotal moment for the digital economy in Russia. This new legislation, reported by TASS, introduces a framework that allows digital assets to be utilized in foreign trade settlements.
Key Features of the New Law
- Taxation of cryptocurrency profits will follow a two-tier system: 13% for incomes up to 2.4 million rubles and 15% for higher incomes.
- Crypto miners will face taxation on their income classified as income in kind, with costs allowed for deductions.
- Corporate mining profits are set to be taxed at a standard rate of 25%, effective from 2025.
Challenges for Crypto Participants
Despite these advancements, strict reporting requirements pose significant challenges. Operators must report client information or face hefty fines of 40,000 rubles. Additionally, miners and traders will lose access to beneficial tax regimes, impacting their operational flexibility.
Implications for Russia's Economic Strategy
This legislative move appears to be strategically aligned with Russia's efforts to find financial alternatives amid global sanctions. The integration of cryptocurrency into the mainstream economy may bolster trade while keeping government oversight strong.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.