Russian President Vladimir Putin has signed a law introducing taxation on income and expenses derived from digital currency mining, purchase and sale.
What Happened: Published on the official legal information portal, the legislation recognizes digital currencies as property under the Tax Code and establishes a taxation framework to regulate crypto-related activities, according to Russian news agency Interfax.
Starting in 2025, income from digital currency transactions will be taxed similarly to securities, with personal income tax rates set at 13% for annual earnings under 2.4 million rubles (approximately $22,640) and 15% for higher incomes.
The law outlines specific rules for calculating the tax base for Bitcoin BTC/USD mining and transactions.
Mining-related expenses are deductible, while the purchase price of cryptocurrencies cannot exceed the market quote plus 20%.
Also Read: This Crypto ‘Killer App’ Could Grow 1,000% Under A Trump Administration: Report
Why It Matters: This measure is part of a broader initiative to regulate and legalize crypto-related activities within Russia.
Discussions continue on legalizing crypto exchanges and creating platforms for spot trading in digital currencies.
The law, which introduces a significant shift in the regulation of cryptocurrency activities in Russia, will come into effect upon official publication, with certain provisions taking effect in January 2025.
The adoption of this framework highlights Russia’s approach to integrating cryptocurrencies into its legal system, enabling taxation while exploring their utility in domestic and international trade.
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