Russia approves a tax cut on cryptocurrencies and digital assets to mitigate the impact of Ukraine sanctions.
On Tuesday, Russian lawmakers adopted a bill that might exclude digital asset and cryptocurrency issuers from the value-added tax.
Russia’s central bank has long been skeptical about cryptocurrencies and other digital assets, citing financial stability risks.
But in February, the regulator issued the first license to exchange digital assets to the blockchain platform Atomyze Russia. A license for the major financial institution Sberbank quickly followed.
As a result of events in Ukraine, unprecedented Western sanctions have struck the heart of Russia’s financial system, and politicians have scrambled to pass new legislation to ease the effect.
Tuesday, in the second and third readings, members of the State Duma passed a bill that exempts issuers of digital assets and information system operators participating in their issuance from value-added tax.
In addition, it defines tax rates applicable to earnings from the sale of digital assets.
The current transaction rate is 20%, the same as the rate for ordinary assets. Under the proposed law, the tax rate for Russian enterprises would be 13% and for foreign corporations, it would be 15%.
For the bill to become law, it must be considered by the upper house and signed by President Vladimir Putin.