Russia Considers Legalizing Cryptocurrency for Payments

Russia is planning to legalize cryptocurrency as a payment method, according to recent statements from government officials. When asked whether cryptocurrency would be legalized as a means of payment in Russia, the minister responded, “A short question — a short answer. I believe yes. The question is when it will happen, how it will happen, and how it will be regulated.”

He added, “Currently, both the Central Bank and the government are actively working on this, but everyone tends to understand that this is a trend of the times. Sooner or later, in one form or another, it will be implemented.” The minister emphasized that everything must be legal and comply with the requirements and rules that will be established primarily by the regulator — the Central Bank — and the government.

He also stressed that cryptocurrencies should be used “legally, properly, and in accordance with the rules that will be formulated.”

Background on Cryptocurrency Regulation in Russia

Even before the start of the special military operation in Ukraine, Russian authorities had begun discussions about the future of cryptocurrencies and mining. The Bank of Russia advocated for a complete ban on cryptocurrencies, while the Ministry of Finance proposed regulating their circulation and taxing them.

Previously, the Ministry of Finance suggested a taxation scheme for cryptocurrencies. The main change is a tax on the revaluation of cryptocurrency for legal entities such as crypto exchanges and mining farms. According to Deputy Finance Minister Alexey Moiseev, even if companies did not sell cryptocurrency, in July they would need to revalue its worth on their accounts and pay tax. The Ministry of Finance proposes not to introduce VAT or property tax, hoping that more companies will “agree to become transparent.”

In January, Russian President Vladimir Putin called on the Central Bank and the cabinet to reach a consensus on cryptocurrencies. In February, the government approved a concept for regulating the circulation of digital currencies, based on proposals from the Ministry of Finance.

Source

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