- Vladimir Putin has signed the Russian federation’s law that classifies crypto as property.
- The federation announced that they were expecting the president’s signature yesterday.
While the digital assets sector is still wading through positive waves, another tide has arrived in the form of Russian regulations. After several years of combating unsteady and obscure regulations, the crypto industry is finally seen in a new light. Following the US elections and bullish cycle, the global economy has begun changing its perspective towards the sector.
Notably, in the last few hours, the community broke into a frenzy as news of Russia’s President Vladimir Putin signing the passing of a new law arrived. The law classifies Bitcoin and other digital assets as property thus providing tax benefits. This new regulation aims to bring order to the digital assets’ taxation processes.
Moreover, under this new law, the Russian government is expected to view digital assets as property. Additionally, even the currencies utilized for foreign payments, the bill states classifying under the framework of experimental legal regimes. This would exempt Value added tax (VAT) for Bitcoin and other related digital assets as per the official statement signed by Putin.
Previously, the Russian Federation announced the reform yesterday and stated expecting Putin’s signature. This occurrence, as aforementioned, has led to a surge in excitement among community members.
However, in regards to crypto mining, the related firms must report to the regulators when their services are used to issue cryptocurrencies. On the other hand, trading renders a personal two-tier tax framework along with the above-mentioned exemptions.
How Is the Vladimir Putin Led Russia Approaching Crypto?
In the past few months, the Russian government has made several announcements regarding crypto regulations. Recently, on November 19, the government proposed this new law for the mining and trading of cryptocurrencies.
Additionally, Putin’s government also recently passed a law that limited crypto mining in particular areas. This was done to limit the country’s energy use. Previously, over the past months, the country has held a positive perspective towards digital assets. However, with these recent advancements, the uncertainty in regulations can also be resolved.
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