Russia aims to clarify crypto currency tax regulations
State officials confirm that holders of crypto-currencies, or anyone mining them, will be regulated under the existing internal tax revenue code
Russia, whose official stance on digital currencies over the past year has been criticized for its vagueness, is trying to introduce some clarity with regard to tax frameworks for cryptos.
Last week state officials confirmed that holders of crypto-currencies and anyone attempting to mine them will be regulated under the existing internal tax revenue code. According to Russian publication Izvestiya , Anatoly Aksakov, Chairman of the Russian State Duma Committee on Financial Markets, said that policymakers were looking to pass a new bill on crypto-currencies during the autumn session and that this will not include a separate section on taxation specifically for crypto-currency trading or mining.
Aksakov added that individuals holding or trading crypto-currencies will need to pay personal income tax and companies will need to pay according to their type of business. Izvestiya also reported that separate taxation schemes for mining and trading of digital currencies may be introduced if the government finds it necessary in the future.
“If they want to determine tax rates for these types of businesses separately, they will,” said Aksakov.
New crypto regulations were until now set to come into effect on July 1. Under them, individuals would have been responsible for their own profit and tax obligations. A recent bankruptcy case resulted in a judge declaring Bitcoin holdings as private property which further muddied Russia’s official status on crypto currency ownership and trading.
There are a number of non-regulated exchanges in Russia offering crypto-to-fiat services but these largely try to stay under the regulatory radar and are usually funded anonymously. Local governments have previously taken heavy-handed actions to shut such operations down.
To make the industry more investor- and regulator-friendly, the Russian Association of Cryptocurrencies and Blockchain (RACIB) has created a registry of credible companies that offer crypto related products and services. The organization has also begun tracking initial coin offerings to prevent further investors’ losses to scammers.
The RACIB said that “the list of trusted companies will allow Russian and foreign market participants to base their work on trusted organizations and minimize the risk of fraud in the creation and development of Russian or foreign business in the field of mining, trading with crypto-currency, blockchain technology and ICO.”
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