Russia Taxes Cryptocurrencies Amid Bitcoin Record

• Russia approves cryptocurrency taxation with a rate of up to 15%
• Bitcoin hits 11 million rubles due to currency devaluation
• Russian miners exempted from VAT to encourage domestic mining

The Federation Council of Russia approved a new regulatory framework for the taxation of cryptocurrencies, 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.

JUST IN: 🇷🇺 Russia to treat # Bitcoin as property and exempt from VAT tax after bill passed parliament's upper house.

It now awaits President Putin's signature. pic.twitter.com/A8AeXu24mm

—Bitcoin Archive (@BTC_Archive) November 28, 2024

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.

The bill went through three readings in the State Duma before receiving approval from the Federation Council. It now awaits President Vladimir Putin's signature to become law and, once signed, will come into force after official publication.

At the time of publication of this article, Bitcoin was being traded at US$95.246,59, down 0.8% in the last 24 hours.

The approval of this new tax framework comes at a time when Bitcoin is trading at record highs against the Russian ruble. The price of Bitcoin has soared to approximately 11 million rubles, driven by global market trends and local economic factors. The depreciation of the ruble against currencies such as the US dollar has contributed to this scenario; on November 27, 2024, the exchange rate reached 113 rubles per dollar, reflecting geopolitical tensions and economic sanctions affecting Russia.