Soon, all Russian residents will be required to report their cryptocurrency holdings in a new bill which was passed in Parliament. This reporting is required if the total transaction exceeds RUB 600,000 (about US$8,100) in a year.
In a further tightening of the reporting framework, crypto exchanges operating in Russia will be required to hand over information on their clients’ transaction volumes if so requested by the authorities.
Under Russian law, cryptocurrencies are considered as assets and hence are taxed under a typical profit and loss methodology. These latest developments came as no surprise, considering that Russia is one of the foremost crypto-advanced country in the world.
Two of the biggest crypto services in Russia is mining and trading. In fact, in a recent quote from Binance CEO Changpeng Zhao, he said that Russia is a key market for Binance. Cryptoexchanges which offer fiat onramps enjoy one of the highest trading volume among other Russian cryptoexchanges.
As regulations start to accelerate in tandem with cryptocurrencies’ prices, we hope the final outcome would be a good balance of innovation and oversight.