Russia has taken an important step in regulating digital assets. President Vladimir Putin has signed a new law that officially recognizes cryptocurrencies as property and introduces new tax rules for transactions and mining activities. The law, published on November 29, 2024, brings significant changes for both individuals and companies in the crypto sector.
Crypto taxes and legal recognition
Under the new regulations, a personal income tax of 13% to 15% will be applied to crypto transactions. However, mining activities are exempt from VAT. Cryptocurrencies obtained through mining are considered income in kind and taxed on a progressive scale. Income up to 2.4 million rubles is taxed at 13%, while higher income falls under a rate of 15%. Mining-related costs are deductible, providing some financial relief to the industry.
The law recognizes digital currencies, including those used in international trade contracts under Russia’s experimental crypto regime, as property. This legal classification provides cryptocurrencies with a clearer status within the Russian legal system.
Strict requirements for miners and companies
The regulations impose additional obligations on mining infrastructure operators. They must report details of their services to authorities, with violations leading to fines of 40,000 rubles, approximately €383. Furthermore, the law prohibits companies and self-employed people in the crypto sector from using special tax regimes such as the single agricultural tax and the self-service tax system. Corporate crypto profits are taxed at the standard corporate tax rate, which will rise to 25% from 2025.
Limitations due to energy consumption
The law also regulates the energy consumption of miners. Only registered Russian legal entities and individual entrepreneurs are allowed to participate in mining activities. Entrepreneurs are allowed to use a maximum of 6,000 kWh per month of energy for mining purposes, while some regions have temporary restrictions due to energy consumption.
Increase in crypto usage
Since the introduction of this law, there has been a growing interest in cryptocurrencies in Russia. Traffic to major crypto exchanges increased by 8% in November, a clear indication that regulations have provided greater clarity and confidence.
With this new legislation, Russia provides a framework for the integration of cryptocurrencies into its economy while tightening supervision and control over the sector. This marks a new phase for the Russian crypto market and is expected to continue to attract both domestic and international interest.
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Source: https://newsbit.nl/rusland-erkent-crypto-officieel-als-eigendom-met-nieuwe-belastingwet/
