- Russia’s new crypto tax law imposes 13%-15% tax on transactions and gives VAT exemptions for miners.
- Bitcoin’s price hit 11M rubles as Russia enforces mining restrictions and reports a surge in crypto traffic.
- Russia’s crypto regulations aim to stabilize the market while addressing energy challenges and taxation.
Russia has signed a new law to control legal regulation of Cryptocurrencies and other operations including buying, selling, and mining. The Federation Council has approved the bill with a 13% tax rate for the annual income of up to 2.4 million rubles and 15% on higher amounts.
Moreover, the legislation affirms that digital currencies are regarded as property under the law, thus helping sort out the legal issue on digital currencies. Crypto miners will receive VAT exemptions but must report detailed operational data to tax authorities. Non-compliance will lead to fines of up to 40,000 rubles.
Mining Operations Face New Restrictions
Russia has introduced specific energy consumption limits for unregistered mining operations. These limits cap usage at 6,000 kilowatt-hours per month.
Authorized miners will face tax obligations based on the market value of cryptocurrencies at the time of mining. Mining activities conducted through registered platforms will remain exempt from VAT.
Regional authorities have also imposed temporary mining bans due to electricity shortages. These restrictions, which began on November 1, will remain in effect until March 2025.
Bitcoin Hits Record High Amid Ruble Decline
The Maximum price of Bitcoin was 11 million rubles per coin on November 27. This increase could be attributed to the global trends and the devaluation of the Russian ruble.
In the last one year the ruble has decreased by 25% which is very close to 113 ruble to US dollar. The price of Bitcoin increased by 45% in November by rising from around 68000 to 99000 dollars.
New regulation rules in Russia and Bitcoin’s price change lead to an 8% increase of crypto related internet activity. Exchanges like Deribit saw traffic spikes of 126%, while KuCoin reported a 23% increase.
Russia’s legislation highlights a shift toward regulating cryptocurrency, ensuring structured taxation while addressing energy challenges and promoting market growth.
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