Home News Income tax will be applied to cryptocurrency transactions over $ 10 000...

Income tax will be applied to cryptocurrency transactions over $ 10 000 worth in rubles

The Federal Financial Monitoring Service (Rosfinmonitoring) announced that cryptocurrency transactions exceeding $10 000 worth in rubles will be soon subject to income tax, as reported by Izvestia outlet.

Russian government expressed support for the draft law “On Digital Financial Assets” submitted by the deputies of the lower house of parliament and is ready to adopt it with some amendments.

Rosfinmonitoring stands for compulsory inclusion of cryptocurrency exchange dealers into the list of organizations specified in the article 5 of the Federal Law No 115-FZ «On Combating Legalisation (Laundering) of Proceeds from Crime and Financing of Terrorism». Thus, the compliance with the general procedures aimed at combating money laundering will be obligatory to them.

The taxation of cryptocurrency mining is also to be expected. It is not specified in the document, however, what exact kind of tax will be applied and whether miners will be obliged to register their sole proprietorship or not.
Today, all the transaction exceeding $ 10 000 have already been put under obligatory control in Russia under the law «On Combating Legalisation (Laundering) of Proceeds from Crime and Financing of Terrorism».

The Head of the Russian Association of Blockchain and Cryptocurrency (RABAC) Yuri Pripachkin commented on this decision stating that such an approach may trigger a massive outflow of Russian cryptocurrency miners to the platforms registered abroad where they will convert cryptocurrencies into foreign fiat currencies.

As we reported in March, RABAC called upon Russian crypto miners to form a united national pull, so that they could occupy a more competitive market position. Earlier in March, the organization conducted a research showing that Russian economy is at risk of losing $1 000 000 000 – $1 500 000 000 of investments in ICOs, should this investment mechanism remain outside the legal framework.