Key Points
- Putin has signed a law regulating the taxation of digital assets classified as property.
- Crypto mining and selling are exempt from VAT, according to the new regulation.
Russian President Vladimir Putin has just signed a law regulating the taxation of digital assets, according to TASS news agency in Russia.
Bitcoin and Digital Assets, Classified as Property
The new law states that digital assets are classified as property, and this also applies to currencies used in foreign trade payments within the framework of the Experimental Legal Regime (EPR) in the field of digital innovation.
According to the new regulation, crypto mining and selling of digital assets are exempt from value-added tax (VAT).
Also, operators of mining infrastructure have to report to the tax authorities issuing digital assets for the use of their services.
Failure to submit such critical data on time could result in a fine of 40,000 rubles which represents a little over $370.
Crypto Obtained via Mining, Classified as Non-Monetary Income
The new law also addresses personal income tax, and states that digital assets obtained via mining operations will be classified as non-monetary income. This is usually used when goods or services are received in exchange for something other than money.
This type of income will be subject to a progressive tax rate, also considering a tax deduction for mining operations-related expenses.
Also, income from the buying, selling, or other circulation of crypto will be subject to a two-stage personal income tax:
- 13% for income up to 2.4 million rubles (around $22,260)
- 15% for income exceeding this amount
These taxes will be included in the same category as income from securities, bank deposits, and other sources.
The new law also addresses corporate income tax, stating that crypto mining will be taxed at the standard rate of 25% starting in 2025.
The new regulation around crypto signed by Putin is very important for the entire industry, as it supports adoption and the sector’s continued growth.
This brings more confidence in the digital assets sector, which is vital during this period when crypto continues to mature, and a new era for digital assets emerges.
Optimism Continues to Flood the Crypto Industry
The crypto industry entered a bullish cycle, boosted by the US elections’ results which showed Donald Trump as the new US President.
His inauguration will take place on January 20, 2025, and the crypto industry continues to remain optimistic at the prospect of friendlier crypto policies that will come along with the upcoming change in Washington.
Despite the Biden administration’s latest efforts to continue fueling the war between Russia and Ukraine, by trying to send nuclear weapons, according to the New York Times, Putin recently addressed the matter, saying that Biden tries to keep Trump stuck in a war.
He said that if President Biden believes that by escalating the confrontation, he would do anything to prevent the future administration from easily getting out of this situation, maybe Trump will say that the blame is on the people who were in power before him.
Putin also expressed his confidence that Trump would come up with a solution, being an experienced and smart person.
Putin continued and said that Trump was subjected to humiliating court procedures and accusations, and his family was attacked as well, including his children.
Putin said that in Russia, not even gangsters do this, and when criminal gangs fight, they do not touch women and children; it’s only men who fight among themselves.
According to the Russian president, this is another example of how low the political system in the US has fallen. He also mentioned the numerous assassination attempts against Trump, telling people to pray for his safety.
However, the people in the US remain stronger and more optimistic than ever about the future, following Thanksgiving Day, celebrated on November 28.
