Putin signs law deeming crypto as property exempt from VAT

Hot on the heels of approving crypto mining regulations in Russia, President Vladimir Putin has inked a new law that classifies cryptocurrency as property, allowing its use in certain foreign trade settlements.

Signed on Friday, the document also exempts the mining and selling of crypto from value-added-tax (VAT).

Digital currency earned through mining is now classified in Russia as “income in kind” and taxed at market rates, while personal income tax is 13% up to 2.4 million rubles ($22,000) and 15% for higher amounts. Corporate income tax will be the standard 25%.

Crypto mining infrastructure operators will be required to report their clients to the tax authorities or risk a fine of 40,000 rubles ($370).

Under the new law, miners and traders will no longer be able to apply for certain tax cuts, such as single agricultural tax.

Read more: Russian investigator handed 16 years in jail for accepting 1,032-bitcoin bribe

The rather bullish move comes after Putin signed a law outlining the rights and obligations of crypto mining firms, which came into effect on November 1.

Existing non-registered entities were greenlit for mining operations subject to limits like an energy consumption cap. The law also gave the government the authority to ban crypto mining in certain territories.

Certain companies were also authorized to make international payments under the new law, via the Bank of Russia.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.