Russia has always been a hotbed for innovation and technological advancement. The country is home to some of the world’s most innovative technology companies, including Yandex.
Russia’s future in the digital currency realm looks promising as well, especially when considering that Russia is home to one of the largest mining pools in the world.
Russia is one of the most bitcoin-friendly countries in the world. Russia has always been known to be a country with an innovative mindset, but it wasn’t until recently that many were aware of this perspective’s latest venture: Bitcoin.
Russia, in an effort to protect its economy, will regulate cryptocurrency without banning them. Russian officials have expressed concerns over the use of cryptocurrency to avoid taxes and launder money, hence their decision to regulate exchanges and anonymous traders alike.
Unlike China’s ban on ICOs and trading cryptocurrency in the country, Russia is making moves to embrace crypto; President Putin has even met with Vitalik Buterin, Ethereum’s founder, to explore its innovation possibilities.
The nation sits at number two on the list of countries that use bitcoin most often. Russia is home to some of the world’s largest exchanges, and it also has arguably the first government-supported research institution dedicated solely to blockchain technology.
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This means that there are plenty of reasons for investors to get excited about what could become another major player in the cryptocurrency market.
The Russian Ministry of Finance has recently released a draft of the laws concerning cryptocurrency and its taxation.
The current law will be changed, with mining and trading in exchange for goods and services subject to the 15% personal income tax rate.
A new law that was recently approved by Russia’s parliament would see cryptocurrency transactions taxed with a 13 percent tax. The proposal has many cryptocurrency enthusiasts worrying about the future of their favorite currency in Russia.
Companies that engage in mining or trading will also be subject to an 18% corporate income tax rate.
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Russia is expected to recognize cryptocurrencies as a form of currency in 2022, according to reports.
The Russian Central Bank has issued a statement that cryptocurrencies will be recognized by the law, and their interaction with other agencies for specific purposes will be made subject to regulation.
Vladimir Putin himself said that legislative regulation will provide certainty in the field of cryptocurrency.