Russian President Vladimir Putin has signed a law that not only recognizes Bitcoin and other cryptocurrencies as legal property but also brings a lot of new regulations to the industry.
The new law rewrites Russia’s Tax Code, turning crypto into a taxable asset. It exempts mining and sales from value-added tax (VAT), but miners must report their activities to local authorities or risk a fine of 40,000 rubles (about $380).
Trading profits are also on the radar, with a tiered tax system: 13% for earnings under 2.4 million rubles ($22,300) and 15% for anything higher.
Starting next year, all crypto companies will face a standard tax rate of 25%. Most parts of this law are effective immediately, except for a few delayed clauses.
Russia anticipates collecting up to 200 billion rubles (around $2 billion) annually from its booming crypto mining sector. And given the country’s global rank as a mining powerhouse, the numbers don’t seem at all far-fetched.
