Miners and holders of digital currencies will be regulated under the Internal Revenue Code in Russia. According to a recent report by local news agency Izvestiya, Anatoly Aksakov, the chairman of the Russian State Duma Committee on Financial Markets, revealed that lawmakers are planning to pass the bill on digital assets during the autumn period of the state.
The Chairman also noted that tax Schemes for crypto asset owners would not be included in the document, this means that mining and circulation of digital currencies will be regulated under existing regulatory guidelines and framework of the Russian Tax Code.
Aksakov also noted that parties involved in the flow of cryptocurrencies are expected to pay personal income tax, while legal bodies will have to pay taxes based on the type of business they venture in. Adding that discrete taxation schemes for circulation and mining of virtual currencies may be introduced in the future depending on the stance of the government on the crypto market. Aksakov stated that:
“If they want to determine [tax rates] for these types of businesses separately, they will. We are not addressing tax issues in any way so far.”
Earlier in May, the Committee for Legislative Work of Russian State Duma declared Its backing for the first reading of an initiative that will implement suitable rules for the cryptocurrency market in the Russian Federation Civil Code. The intention of the initiative is to “minimize the existing risks of using digital objects for transferring assets into an unregulated digital environment for the legalization of criminal incomes, bankruptcy fraud or for sponsoring terrorist groups.”
Herman Gref, the Chief Executive Officer of Sberbank, the biggest state bank in Russia, recently revealed that the state would hold its central role in the circulation of money. It was also reported that two of the largest banks in the country, Sberbank, and Alfa Bank, were set to launch crypto products to serve their customers in June. Gref expressed his doubt about the state readiness “to yield its centralized role in emission of fiat currency to some other decentralized institutions.”
In June, it was reported that a small town in Russia, Koloniovo, was adopting its own digital currency and phasing out the ruble after a banker turned farmer, Mikhail Shlyapnikov, broke free from the banking interest system due to his limitations. Shlyapnikov stated that: “I didn’t want to suffocate and be a slave of the banks, so I had to invent my own money. And I did it. I’m my own bank, government, regulator.”