Russia Reportedly Wants To Introduce Tax on the Exchange of Crypto for Rubles

A recent report from Russian newspaper Izvestia suggests that the Russian Ministry of Economic Development plans to call for taxing crypto when it is converted into Russian rubles.

The Proposed Tax Is Similar to Existing Foreign Exchange Taxes

According to the report, the Ministry of Economic Development wants to tax cryptos when users realize their profits and convert them back into rubles. If this proposal is accepted, such a transaction will be taxed at an income tax rate, which is 13% in Russia (in most cases).

Also, the report indicates that the Ministry of Economic Development wants to allow crypto mining in energy-rich regions and is even ready to propose special electricity tariffs. This looks like a dream come true for crypto miners, although this proposal will likely face material opposition.

Expect More News From Russia in the Next Few Days

Russia is expected to release a draft version of the new crypto law by February 18, so we will likely see more news on this front in the next few days. At this point, it looks that Russia does not want to miss potential profits from Bitcoin mining, and would also like to take its share of the crypto traders’ profits.

At the same time, it is unclear whether the final version of the legislation will be too soft as the Russian Central Bank views cryptocurrencies as a threat to the financial system and is worried about crypto’s role in money laundering.

The good news is that Russia should not ban mining, as more countries become hostile to the industry due to energy shortages and high electricity prices.

In the short term, cryptocurrencies will also be sensitive to other news from Russia. Recent reports from Russian news agencies suggest that some troops have been given orders to move away from the Ukrainian border, which is bullish for all riskier assets, including cryptocurrencies.