Crypto Owners And Miners In Russia Will Be Regulated Under Existing Tax Code

News, Regulation | July 19, 2018 By:

The government of Russia will reportedly regulate cryptocurrency owners and miners under the Russian Tax Code.

In May of this year, the Russian parliament approved the first reading of new laws regulating the crypto industry. The bill, “On Digital Financial Assets,” deals with cryptocurrencies, as well as blockchain-related technologies such as smart contracts, mining, and initial coin offering (ICO). The adoption of the legislation, however, has been delayed.

“We don’t have time during the spring session,” Anatoly Aksakov, the Chairman of the Russian State Duma Committee on Financial Markets. “The technology is rather complicated, it is largely transboundary. So, taking into account its characteristics, we wouldn’t like to write down norms that wouldn’t work. The documents will be ready by early fall. We expect the second and third reading in September.”

Aksakov said the framework will not include separate tax regimes for owners of cryptocurrencies, which means mining and exchange of digital currency will come under the jurisdiction of all taxation statutes currently in effect.

The chairman specified that the framework will require legal entities engaged in the circulation of cryptocurrencies to pay taxes in accordance with their type of business, while individuals will be required to pay personal income tax. He said crypto-specific tax statutes may appear in the future if the government finds it necessary.

“If they feel like creating separate (statutes) for this type of business, then they’ll create them,” Aksakov said. “For now, we’re not going to deal with issues in any form.”