Russia checks a law to legalize the market for digital assets

• The Russian ministerial cabinet has submitted a draft law for taxes on transactions with digital assets.
• The cryptocurrency community celebrated this message.

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Some provisions of the draft law have been specified and specified, including those that relate to the activities of digital mining, according to the message on the website of the Ministry.

The document provides for the creation of a comprehensive regulation of the cryptocurrency market, including the order of transactions with digital currencies and their output, as well as the determination of the special features of the activities of the subjects of the cryptocurrency market.

The document illustrates the characteristics of VAT for operations when selling digital assets, corporate tax and personal income tax on profits and income from taxpayers from the sale of digital assets.

In accordance with the draft law, the services of operators of information systems that issue digital financial assets (DFA), as well as stock market operators of digital financial assets for the approval of digital rights, will be subject to VAT.

The financial result of transactions with CFA is determined separately at the time of the yield payment for each transaction and for its entirety.

The tax assessment basis for transactions with securities that are not traded on the organized securities market can be reduced by the amount of the loss from transactions with CFA.

In the use of digital rights, which include both security and utility tokens, the tax assessment basis is determined as a difference between the recycling price and the acquisition price of the said digital law taking into account the tax amount.

Income tax for Russian organizations that have digital rights is 13 percent, 15 percent for foreign companies

The CFA issuer must submit a report on transactions to the tax authorities by February 1, 2023, which were made in 2022 with CFA and people who were involved in the transaction.

It should be remembered that changes to the tax code to tax transactions with crypto systems can be assumed in parallel to the draft law "via digital currencies". The latter provides transactions with cryptocurrencies by Russian banks, the identification of owners of cryptocurrency wallets and the separation of investors according to qualification.

Reaction of the crypto-community

This message was received very positively by the cryptocurrency community. The CEO of Binance, Changpeng "CZ" Zhao, wrote on Twitter: "Russia will legalize crypto for payments. Surprise surprise."

But then he had to extinguish the post because the information turned out to be unconfirmed. A local Russian online newspaper " коммерсантъ " published an article about the supposedly final version of the document. The document is anchoring the terminology in connection with digital currency, the regulatory framework for its distribution and output and a number of other aspects. It introduces a large number of requirements for identification, bookkeeping and certification, but as stated by the experts surveyed, these requirements will not influence transactions with cryptocurrency outside of the Russian information infrastructure.

Incidentally, in the event of complete legalization of digital assets, Russia will be able to use cryptocurrencies such as Bitcoin to receive payments for gas and oil exports under sanctions.

explosive.

Russia now demands that Europe pay gas in ruble.

Europe receives 40 % of its gas from Russia. That is 200-800 million euros per day.

Putin basically says: Do you want to play sanctions? Either pay or freeze in ruble.

- Richard Medhurst (@richimedhurst) 23. March 2022