State Duma signals possible passage of cryptocurrency taxation bill in spring session

The bill on amendments to the Tax Code concerning the taxation of cryptocurrency transactions is planned to be adopted by the end of the Duma’s spring session. This was reported by the head of the Committee on the Financial Market, Anatoly Aksakov, according to «Izvestiya».

The document in the first reading was adopted as early as February of last year. It recognises cryptocurrencies as property and obliges reporting to tax authorities on the turnover of digital assets exceeding 600,000 rubles per year. This threshold is not planned to be changed, Aksakov added.

The deputy also noted that amendments to the Tax Code could be adopted in parallel with the industry-regulation bill. He expects that document to be submitted to the State Duma in May. 

In his words, the regulation of the bitcoin market has been pushed to the back burner amid the government’s development of anti-crisis measures. In response to Russia’s invasion of Ukraine, many countries imposed strict sanctions against Russia, froze the Bank of Russia’s reserves, and hundreds of companies left the country.

The Bank of Russia, which takes a restrictive stance on cryptocurrencies, believes that potential revenue from taxing digital-asset transactions and mining may be lower than the losses:

“The legal segment of the market will become a convenient gateway for the withdrawal of illegal funds into fiat money: the larger the ‘white’ market, the greater the opportunities for selling cryptocurrencies obtained in the course of criminal activity. As a result, the shadow economy will expand.”

The Bank of Russia aims to prohibit the issuance, circulation and exchange of cryptocurrencies, as well as the organisation of such operations within the Russian Federation. The regulator also insists on declaring crypto assets even if a ban is imposed.

The government did not share this position. The Ministry of Finance advocated regulating the industry and presented the corresponding bill.

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