Russia: Law recognizing cryptocurrency as property signed by president

A law recognizing cryptocurrency as property was recently signed by Russian President Vladimir Putin. With this move, Russia has taken a significant step towards the development of the sector in the country by officially recognizing digital currencies as a type of property.

The legislation signed by President Putin deals with the regulation of the taxation of digital currency. The law comes into force from the date of its official publication, November 29, with the exception of some provisions that have different deadlines.

The new law highlights that digital currency is officially recognized in Russia as property and, in addition, the legislation is also applied to currency that is used for foreign trade settlements “within the framework of the experimental legal regime (EPR) in the field of digital innovation”.

However, services for mining and selling digital currency are not subject to VAT. The operator of the mining infrastructure will be required to provide the country's tax authorities with information about the use of its services for issuing cryptocurrency. A fine of 40 thousand rubles may be imposed if the information is not provided on time.

Russia Cryptocurrency Rates

The Federation Council of Russia approved a new regulatory framework for cryptocurrency taxation, coinciding with Bitcoin reaching all-time highs against the Russian ruble. On November 27, 2024, the upper house of the Russian parliament signed into law a federal bill that establishes new taxes on cryptocurrency transactions, recognizes these assets as property and implements a structured tax system.

The new legislation imposes a personal income tax rate of between 13% and 15% on the sale of cryptocurrencies. Notably, the bill exempts Russian miners from paying Value Added Tax (VAT) on mined coins, a measure intended to encourage domestic mining activities. Additionally, mining infrastructure operators are required to report their activities to local authorities, with fines of 40.000 rubles (approximately $360) for those who fail to comply.