Putin Passes New Tax Laws for Crypto Amid Bitcoin Surge Towards $100K

Russian President Vladimir Putin has signed a new law that regulates the taxation of digital currencies, marking a significant step towards streamlining Russia’s cryptocurrency landscape. This legislation recognizes digital currencies, such as Bitcoin, as property, allowing for clearer tax regulation and compliance within the rapidly growing crypto sector.

According to the report, the key features of the law include:

1. Classification of Digital currencies: Putin’s new law classifies digital currencies as property under Russia’s Tax Code. This classification is crucial as it aligns with global trends and provides a framework for crypto transactions. These transactions also include transactions that are used for foreign trade payments.
2. Exemption from Value-Added Tax (VAT): Putin’s new law also exempts mining and selling of cryptocurrency from VAT. This move will encourage more innovation within the industry and will also attract businesses without the additional taxes.
3. Tax Reporting Requirements: Mining facility operators must report to tax authorities when their services are used for issuing cryptocurrencies. If one fails to do so, fine of up to 40,000 rubles will be charged.
4. Personal Income Tax Rates: According to Putin’s new taxation law, a two-tier personal income tax system is established. Within this system, earnings up to 2.4 million rubles taxed at 13% and income above this amount will be taxed at 15%.
5. Corporate tax: Corporate entities involved in cryptocurrency mining will be a subject to standard corporate tax rate of 25% starting in 2025.

Impact of the Putin’s New Taxation Law on Crypto Industry

The new Russian law on digital currency taxation is expected to have a positive impact on the crypto sector. The law will actually provide regulatory clarity and encourage crypto adoption all over the globe.

Law Passed Amid Bitcoin’s Surge towards $100,000 mark

The new cryptocurrency taxation law has been passed at a pivotal moment. Bitcoin has been trying to reach the $100,000 mark for almost a week now, and with this new development, it seems like the token might just reach the $100,000 really soon. This move is sure to bring in investors, which will in turn help in pushing the token value to its ultimate goal.

At press time, the price of the Bitcoin token stands at $98,125.38 with a surge of 3.2% in the last 24 hours, which is just 2% away from its most anticipated $100,000 mark.

This new law represents a significant shift in how Russia approaches digital currencies. By exempting mining and sales from VAT, Russia aims to attract investors and drive growth in the market. This move may also influence other countries to adopt similar regulatory guidelines, and shape the global crypto landscape.

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