Russia’s Vladimir Putin has made it official—Bitcoin is here to stay, and no one can ban it. Speaking at the Investment Forum in Moscow on December 4, Putin made it clear that he believes crypto is the future. The president seems to have gone pro-crypto now, though to be fair, he was never particularly against it.
Just days before, Putin signed a groundbreaking law that legally classifies cryptocurrencies as “legal property.”
The law creates a solid legal framework for taxing crypto transactions and mining activities. Russia, already a crypto mining giant, is banking on bringing in up to 200 billion rubles ($2 billion) a year from mining alone.
The Russian government, with Putin’s blessing, is pulling out all the stops to capitalize on its untapped crypto potential. The new law is nothing if not strategic. By exempting cryptocurrency mining and sales from the value-added tax (VAT), Russia is giving miners some breathing room.
However, operators must still report their activities to local authorities. Skipping this requirement comes with a 40,000-ruble ($380) fine.
For those trading crypto, income taxes apply. Earn up to 2.4 million rubles ($22,300), and you’ll pay 13%. Anything above that? A steep 15% rate kicks in. Corporate entities won’t escape either—they’ll face the standard corporate tax rate of 25% starting next year.
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