Russia is taking decisive steps toward regulating its burgeoning cryptocurrency sector, proposing a 15% tax on income derived from crypto transactions. The draft amendment, presented by the Ministry of Finance, aims to establish a more structured approach to the taxation of crypto miners and related activities.
The new rules, if enacted, would tax crypto mining earnings based on the market value of the tokens at the time they are received. Miners would also be allowed to deduct mining-related expenses, offering a more balanced approach to the tax calculation, according to a report by Interfax.
Under the proposal, cryptocurrencies would be classified as property for tax purposes, with the value-added tax (VAT) on crypto transactions being eliminated. Instead, income from these transactions would be taxed in a manner akin to securities, simplifying the process for both individuals and businesses in the sector.
Additionally, the draft amendment would require crypto mining operators to notify tax authorities about individuals using their facilities for mining purposes. However, the precise details regarding the type of information to be disclosed remain unclear.
The tax proposal is part of broader efforts to address energy concerns related to cryptocurrency mining. Starting November 1, only officially registered miners will be permitted to operate legally in Russia, and individual miners will face a limit of 6,000 kWh of electricity per month. In response to potential power shortages, temporary mining bans are set to be implemented from December 1, 2024, to March 15, 2025, in certain regions.
As Russia pushes forward with these regulatory measures, the country is also advancing its digital currency initiatives. Recently, Sberbank launched a pilot program for crypto-based settlements, signaling Russia’s intent to integrate digital currencies into its national financial infrastructure.
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