According to a Russian local newspaper Izvestiya, the head of State Duma [the Russian lower house of the Federal Assembly] Committee for financial markets, Anatoly Aksakov has signaled towards the authority’s consideration on passing a bill on digital assets in its autumn session.
It is said that there will be no segregated tax infrastructure for cryptocurrency space. All the cryptocurrency investors, holders and miners will be regulated under the Internal Revenue Code of Russia to have a common framework for all taxpayers. In this context, the Chairman said:
“Separate tax regimes for owners of digital currency will not be described in the regulation text.”
He also added that there may be a future possibility of a separate set of regulations. He said:
“If they feel like creating separate statutes for this type of business, then they’ll create them. For now, we’re not going to deal with issues in any form.”
According to Aksakov, the authority is not issuing any form of tax framework for cryptocurrency businesses currently but will determine separate tax rates for the sector if they sense a requirement.
Just as in any traditional tax payment framework, cryptocurrency holders and businesses will follow the process of filing personal income taxes and abiding by the tax laws for the respective business types.
Last year, Vladimir Putin, the President of Russia conveyed to several authorities, including the Bank of Russia, to frame legislative policies on Initial Coin Offering [ICO] by July 2018. The lawmakers have been trying to approach the existence of cryptocurrencies in the system with practicality, along with the developers appointed to form these new regulations.
On the other hand, there have also been instances in Russia where it has been observed that rigidity still exists among the Russian authorities regarding cryptocurrencies. The cases of cryptocurrency ATMs being disappeared and ban on advocating or sharing cryptocurrency information by St. Petersburg have caused a stringent atmosphere.
The Russian Association of Cryptocurrencies and Blockchain, in order to keep fraudulent practices at bay, has prepared a record of whitelisted firms acting at the forefront of the cryptocurrency space. These companies include any cryptocurrency-related services and products such as investment, ICOs, marketing, training, legal or mining.
About two months ago, The Russian State Duma’s Committee for Legislative Work also said that it will support an initiative aiming to form regulations for a digital economy in Russia’s Federation Civil Code. The authority wants to “minimize the existing risks of using digital objects for transferring assets into an unregulated digital environment for the legalization of criminal incomes, bankruptcy fraud or for sponsoring terrorist groups”.
Russia is not the only country concerning itself with the hassle of creating regulatory tax modules for its cryptocurrency holders. Recently, cryptocurrency debates have also stirred much agitation among the authorities of India and Australia.