In a recent interview with Russian Newspaper Izvestia, Anatoly Aksakov, Chairman of the State Duma Committee on the Financial Market, unveiled plans to legalize cross-border transactions with cryptocurrencies by the second half of 2024. The initiative aims to leverage the St. Petersburg Exchange platform, with discussions currently underway.
Russian Crypto Legislation
Additionally, Aksakov disclosed intentions to experiment with the use of digital currency among BRICS countries for mutual settlements between participating nations in 2025–2026. The Russian government also plans to pass a crypto regulation in 2024, the report added.
Further, Aksakov affirmed the importance of using cryptocurrencies for international payments. He added that they’re underscoring efforts to pass the legislation in March’s first reading and April’s second reading.
Initially, it was planned that crypto legislation would be discussed in November 2023. However, the process was delayed due to hurdles in coordinating key institutions, including the government, Ministry of Finance, Ministry of Economy, Central Bank, and law enforcement agencies. Aksakov expects resolution during January meetings, highlighting the urgency due to the substantial size of the Russian cryptocurrency market.
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Crypto Taxation In Russia
Responding to questions about the regulatory scope, Aksakov confirmed plans to regulate mining, cryptocurrency circulation, cross-border payments, and taxation. Notably, the proposal includes introducing penalties for the illegal use of cryptocurrencies.
Regarding taxation, the Ministry of Finance’s suggestion of imposing a 20% income tax on miners is under consideration. Aksakov indicated that this issue is still open for discussion, with the possibility of taxing income instead of profits. The collected taxes are expected to contribute to the national budget.
Crypto For Cross-Border Transactions
In a move to boost the crypto industry, the State Duma expressed support for the Ministry of Finance’s proposal to allow miners to sell cryptocurrency as an export product. The progression of Russia’s crypto legislation is anticipated to enable businesses to legally conduct cross-border transactions with crypto in the latter half of 2024.
Despite the challenges, Aksakov is optimistic about the impending legislation, recognizing the evolving nature of the market. Russian companies, faced with sanctions, have already begun increasing their use of cryptocurrencies for international payments.
The comprehensive legislation signals a significant step towards establishing a regulated framework for cryptocurrencies in Russia, aligning with global trends in the digital asset space.
Also Read: Japan To Introduce Major Crypto Tax Reforms In 2024
