Russia intends to tax cryptocurrency transactions

Russia plans to tax cryptocurrency transactions in the near future.

The State Duma and the Ministry of Finance are preparing to introduce the legislation according to the publication Kommersant.

Miners will be considered entrepreneurs, and they will have to keep records, and pay taxes/fees. Cryptocurrency transactions themselves will not be taxed unless the transaction “brings the individual financial benefits.”

Lawmakers intend to set the tax rate on cryptocurrencies to 13%.

But, according to experts it will not be implemented immediately. For example, taxation does not yet know how it will identify miners and investors of cryptocurrency.

“The FTS simply does not have any experience in this area, nor understanding of how cryptocurrency exchanges operate. In addition, state regulation runs counter to the principles of anonymity and independence regarding the functioning of electronic currency,” according to a letter from the Ministry of Finance addressing cryptocurrency dated October 13, 2017.

Write: Richard Abermann


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