Rules of the Russian Tax Code Will Be Applied for Mining and Circulation of Cryptocurrencies

Rules of the Russian Tax Code Will Be Applied for Mining and Circulation of Cryptocurrencies

Crypto Miners and Holders in Russia Will Be Regulated Under Existing Laws

On July 18, 2018 the local media outlet Izvestiya whote that the cryptocurrency miners and holders in Russia will be regulated under the Internal Revenue Code.

Anatoly Aksakov – the Chairman of the Russian State Duma Committee on Financial Markets – told Izvestiya that legislators expect to pass the bill on digital financial assets, or cryptocurrencies, during the autumn session of the Duma.

A. Aksakov stated that the document will not have special taxation schemes for cryptocurrency owners. Mining and circulation of cryptocurrencies will be regulated according to existing rules of the Russian Tax Code.

A. Aksakov specified that individuals dealing with transactions of cryptocurrencies will pay personal income tax, while legal entities will have to pay taxes in accordance with their type of business. He told Izvestiya that special taxation schemes for mining and circulation of cryptocurrencies may be developed later if the government finds it necessary.

In May 2018, the Russian State Duma’s Committee for Legislative Work reported that it will support the first reading of a bill that will provide norms for the digital economy in the Russian Federation Civil Code. The goal of the initiative is to “minimize the existing risks of using digital objects for transferring assets into an unregulated digital environment for legalization of criminal incomes, bankruptcy fraud or for sponsoring terrorist groups.”

Earlier in July 2018, Herman Gref – the CEO of Sberbank (the largest state bank in Russia) – said that state does not plan to stop being a central money emitter. H. Gref said that the state is not ready “to yield its central role in emission of fiat currency to some other decentralized institutions.”


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