Russia's diving headfirst into the crypto world with a new tax game plan, and it's turning heads! The Federation Council just gave the thumbs up to a federal bill that's all set to shake up how cryptocurrency transactions and mining are taxed in the country. And guess what? It's now just a signature away from becoming law, waiting on President Vladimir Putin's nod.
So, what's the scoop? Digital currencies are getting the VIP treatment as property, and they'll be saying goodbye to the value-added tax (VAT). But, hold onto your digital wallets! Crypto sales are stepping into the spotlight with a personal income tax rate of 13%-15%, just like the big players in securities transactions. Crypto miners, rejoice! Your mined coins are dodging the VAT bullet, but there's a catch: you must keep the tax authorities in the loop about your mining adventures. And if you skip out on reporting? That'll cost you a cool 40,000 rubles, around $360.
Why now, you ask? Well, Bitcoin's been showing off against the Russian ruble, hitting record highs and sparking a crypto frenzy in the nation. The new bill also gives a nod to digital currencies in foreign trade deals, thanks to Russia's experimental legal crypto framework.
But hold your horses, miners! Russia's planning to hit pause on crypto mining this winter to save some juice on electricity. Regions like Irkutsk and Buryatia will take a mining nap from December to mid-March, with similar snooze sessions planned through 2031. And starting 2024, the North Caucasus and some Russian-controlled Ukrainian territories will join the long-term mining siesta.
And let's talk numbers! Bitcoin's been on a wild ride, flirting with the $100,000 mark, and the excitement is contagious. Russian internet traffic to major crypto exchanges shot up by 8% in early November, thanks in part to local regulatory shake-ups. This mirrors a global trend, with an 8%-10% monthly jump in visits to the top 20 crypto exchanges. Russians are making waves, accounting for about 27%-30% of the traffic, underscoring their growing love affair with the dynamic crypto market. The crypto craze is real, folks!
