Russia Will Soon Impose A Crypto Tax, But Won't Recognize It As A Means Of Payment

Crypto tax will be imposed in Russia. (photo: doc. pixabay)

JAKARTA - In recent months, Russian legislators have been preparing steps to fully institutionalize cryptocurrencies as a taxable investment asset and an enabling tool for foreign trade in Russia.

Now, they want to make it clear that the upcoming regulatory changes will not include any window for adopting digital financial products as a payment method.

On Tuesday, June 7, Anatoly Aksakov, head of the Financial Markets Committee of Russia's lower house of parliament - the State Duma - introduced a law that would prohibit the use of "digital financial actives" (DFA) to pay for any kind of goods or services.

The ruble is the official monetary unit (currency) of the Russian Federation. The above-mentioned article prohibits the introduction of other monetary units or monetary substitutes on the territory of the Russian Federation," the Duma said in a statement quoted by Cointelegraph.

The bill draws on existing legislation, which does not explicitly prohibit the use of DFA as a payment method, although de facto such operations are still not considered legal in the country.

The new document will make this ban official and require DFA exchange managers to withhold any transactions involving the use of cryptocurrencies as monetary substitutes.

The bill also introduces the concept of an “electronic platform,” which is loosely defined as a financial platform, investment platform or information system on which digital financial assets are issued.

The electronic platform will be recognized as the subject of the national payment system and shall be subject to the register of the central bank. Each major operation with a DFA, its issuance, circulation, exchange and trading, will have its own registration.

The existing law on Digital Financial Actives goes into effect in 2021. In May 2022, the tax amendments to the DFA passed their first reading in the State Duma. In a separate development, two other important bills continue their journey through the legislative process — the “On Digital Currencies” bill will define the regulatory framework for cryptocurrencies in general. While the bill “On Mining in the Russian Federation” should establish guidelines. for miners.