As a seasoned analyst with extensive experience in global financial markets, I find myself both intrigued and cautiously optimistic about Russia’s latest move towards regulating cryptocurrencies. While the new taxes on cryptocurrency transactions are a step towards bringing digital assets into the mainstream, it remains to be seen how effectively this will be enforced given the inherent anonymity of these transactions.
As a crypto investor, I’m keenly aware that the Russian government is hastily implementing new tax regulations for digital currencies, coming hot on the heels of Bitcoin setting new records against the Russian Ruble.
In simpler terms, it means that the Russian Senate (Federation Council), which is the upper part of their parliament, has given its approval to a national law that will impose fresh taxes on transactions involving cryptocurrencies.
The legislation passed on November 27 considers digital currencies to be equivalent to property, and it sets a personal income tax rate of between 13% and 15% for transactions involving cryptocurrency sales. Furthermore, Russian crypto miners are exempted from paying Value-Added Tax (VAT) on the coins they mine.
As a researcher, I’ve observed that the legislative bill progressed through three rounds of deliberation in the State Duma. Subsequently, it received approval from the Federation Council. Now, it is waiting for President Vladimir Putin’s signature to convert it into law. Upon his signing and its official publication, the law will then be enforced.
Russian crypto miners must report activity to the government
As per the legislation, digital currencies – even those employed in international trade deals under Russia’s trial cryptocurrency law – are considered assets.
To maintain transparency regarding taxes, operators of Russia’s mining facilities are required to share essential details about their crypto-mining operations with local government bodies.
Failure to comply will result in fines of 40,000 rubles (about $360).
Furthermore, mining infrastructure operators who are duly authorized won’t have their services taxed within the territory of the Russian Federation.
Bitcoin is trading at all-time high levels against the ruble
The Federation Council’s endorsement of the fresh crypto taxation system coincides with Bitcoin (BTC) reaching record levels when compared to Russia’s domestic currency, the ruble.
On November 27th, the value of one Bitcoin peaked at an unprecedented maximum when compared to the Russian ruble, approximately equating to 11 million rubles, as reported by data from Coinbase.
The gathering’s momentum is partially driven by the escalating value of Bitcoin worldwide, as its price approaches $100,000, and the weakening of the Russian Ruble in relation to the U.S. Dollar.
As an analyst, I observed on November 27th that the value of the US dollar against the Russian ruble reached a significant peak not seen for quite some time – approximately 113 rubles per dollar. This level was momentarily attained back in March 2022 after Russia announced its “special military operation” in Ukraine.
According to TradingView data, $1.00 is currently worth 111 rubles, up 25% over the past year.
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2024-11-28 12:14