The Russian parliament passed a bill on Tuesday that would exclude cryptocurrency issuers from paying value-added tax (VAT). The information provided by Reuters will tremendously please those who are already active in the market. And for those who might be interested, it appears that the time is right for them to start investing as well.
Significant attitude shift in Russia
According to a Reuters article on the measure that has been adopted by the Russian parliament, cryptocurrency issuers won’t any longer be compelled to pay VAT. However, the new draft also proposes a new tax rate of 13% for Russian enterprises and 15% for foreign corporations on income taxes from cryptocurrency. This is in addition to the VAT exemption.
The Duma members gave this law its approval at the second and third readings. But the battle is not yet over. Before going into action, the project still has to receive the upper house’s and President Vladimir Putin’s approval. In any event, it signals a significant shift in thinking in Russia while we wait for this potential adoption. In fact, cryptocurrencies have previously faced harsh criticism there.
From cryptocurrency being rejected to a potential acceptance
The Russian central bank called for a severe prohibition on cryptocurrency on home soil a few months ago. The group claims that a significant amount of financial instability in the nation’s economy may be caused by digital assets. However, things started to change when Russia found itself isolated on the international stage as a result of the invasion of Ukraine.
Despite successive Western sanctions beginning to weaken the nation’s traditional financial system, it has become more friendly to cryptocurrency. Undoubtedly, Russia’s decision to change its stance on industry regulation was motivated by its desire to ultimately adopt cryptocurrencies.
The largest bank in Russia, the Russian central bank, has stated that it intends to start creating cryptocurrencies and allowing its customers to use them, which is completely at odds with Sberbank’s announcement. But she needed the central bank’s approval for this.
Is Russia getting friendlier to cryptocurrency? This is the impression that has been spread recently by the authorities. Although they were initially opposed to cryptocurrencies, they now appear more receptive to their acceptance. The Duma’s approval of a new draft bill that would exempt issuers of digital assets from paying VAT serves as proof.
Source : The Block
