Russia approves new crypto tax

FILE PHOTO: The Russian government has approved a federal bill for new taxes on cryptocurrency transactions. 
| Photo Credit: Reuters

The Russian government has approved a federal bill for new taxes on cryptocurrency transactions. Approved by the country’s upper house of parliament, the Federation Council, on November 27, the law imposes between 13%-15% personal income tax on cryptocurrency sales. 

The bill recognises digital currency as property. 

Mining activities have been made exempt from value-added tax (VAT). However, mining operators have to report necessary details about the crypto mining services to local authorities or pay a fine of 40,000 rubles, which amounts to around $360. 

Bitcoin is currently trading at an all-time high against the ruble touching around 11 million rubles, as reported by Coinbase.

Once signed by President Vladimir Putin, the legislation will officially take effect. 

The country has also introduced measures to restrict crypto mining in energy-deficient regions to ensure that mining activities don’t burden the power grid.