Russia plans to regulate crypto under Internal Revenue Code. This implies that mining and circulation of cryptocurrencies will be overseen under the existing provision of the Russian Tax Code.
19 July, AtoZ Markets – Russian cryptocurrency miners and holders will be regulated under the Internal Revenue Code, according to local media sources.
Russia Plans to Regulate Crypto Under Internal Revenue Code
Reportedly, the Chairman of the Russian State Duma Committee on Financial Markets, Anatoly Aksakov, has stated that authorities are now looking to pass the bill on digital financial assets. He has noted that the bill might pass the officials during the autumn session of Duma.
As per Mr. Aksakov, the document will not feature any separate taxation schemes for cryptocurrency owners. This implies that mining and circulation of cryptocurrencies will be overseen under the existing provision of the Russian Tax Code.
He has further explained that individuals that are engaged in the circulation of cryptocurrencies will need to pay personal income tax. At the same time, legal entities will have to pay taxes according to their type of business. He has stated that separate taxations schemes for circulation and mining of cryptocurrency might appear in the future in case the authorities will find it necessary.
Russian Digital Economy
Mr. Aksakov has further stated:
“If they want to determine [tax rates] for these types of businesses separately, they will. We are not addressing tax issues in any way so far.”
Back in May, the Russian State Duma’s Committee for Legislative Work has made an announcement regarding the support for the first reading of initiative that aims to set out the norms for the digital economy. The initiative plans to “minimize the existing risks of using digital objects for transferring assets into an unregulated digital environment for the legalization of criminal incomes, bankruptcy fraud or for sponsoring terrorist groups.”
Earlier this month, the CEO of Sberbank, the largest Russian state bank, Herman Gref, has stated that Russia will keep its central role in money emission. Mr. Gref has also stated that he does not believe that Russia is ready “to yield its centralized role in the emission of fiat currency to some other decentralized institutions.”
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