Russia’s Federation Council has approved sweeping amendments to the nation’s Tax Code, formalizing the taxation framework for digital currencies like Bitcoin (BTC).
This legislation was adopted by the government on November 27th. It is a crucial step in regulating and ensuring tax compliance for the crypto industry, which has been growing rapidly.
Comprehensive tax laws
The New Law, Titled “On Amendments to Parts One and Two of the Tax Code of the Russian Federation and Certain Legislative Acts of the Russian Federation,” was introduced by Alexander Shenderiuk-Zhidkov, Deputy Chairman of the Federation Council’s Committee on Budget and Financial Markets.
The amendments define digital currency as property for tax purposes, providing legal clarity that aligns with Russia’s broader regulatory goals. According to the new Tax Code, crypto-related income will be subjected to a personal income tax.
The tax rate for income below a certain threshold is 13%. For higher income levels, the rate will be 15%. The structure is designed to strike a balance between government revenue and fairness towards individuals and companies involved in trading digital assets.
In addition, the operators of mining companies must provide detailed information to tax authorities in their locality. The move is intended to increase transparency and to address any potential regulatory holes within the mining industry.
Disclosures on mining activities performed by clients are included, as is addressing concerns over regulatory gaps in the industry and possible tax evasion.
Mining exemptions
In order to distinguish crypto transactions from other economic activities, the legislation includes exemptions for certain crypto activities. These include mining digital currency and sales of such currencies. The provision has been hailed as an important incentive for crypto-miners in Russia.
As global debates over their regulation continue, Russia is increasing its supervision of digital currencies. The government has also introduced measures to restrict crypto mining in energy-deficient regions, ensuring that mining activities do not strain the country’s power grid.
Analysts believe that the new framework of taxation could produce up to $200 billion (approximately $ 2 billion) in annual state revenues, strengthening the finances of the government and supporting the digital sector.
Some critics have expressed concerns over the possible difficulties of enforcing this law, particularly when it comes to monitoring decentralized financial activity. But supporters argue that this law strikes the right balance between fostering innovative ideas and maintaining fiscal responsibility.
The amendments are part of a broader strategy to integrate digital currencies into Russia’s financial system while addressing risks associated with unregulated markets.
Posted In: Bitcoin, Russia, Adoption, Crypto, Featured, Legal, Regulation Author 
Assad Jafri
AJ is a dedicated journalist who has spent over a decade honing his craft in various countries. He specializes in financial reporting and now concentrates on cryptocurrency.
Email @Saajthebard on LinkedIn Editor
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