Russia‘s Federation Council has approved a bill that imposes taxation on cryptocurrency transactions and mining. The new regulation exempts cryptocurrency transactions from value-added tax (VAT). Only President Vladimir Putin‘s signature is now awaited for the bill to become law.

VAT Exemption for Cryptocurrency Transactions

According to the Federation Council’s announcement, the bill was approved on Wednesday. The lower house, the State Duma, had accepted the regulation a day earlier. The legislation, prepared by the Russian government, defines cryptocurrencies as a type of property.

Under the new regulation, cryptocurrency transactions will be exempt from VAT. However, income derived from cryptocurrency trading will be taxed at the same rate as capital gains. This rate can reach up to 15% for personal income tax. Additionally, income from mining activities will be taxed based on the market value at the time of acquisition.