Russia Eyes $13 Billion in Taxes From Crypto Economy

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Russia Eyes $13 Billion in Taxes From Crypto Economy

A document that was leaked to the media has details about conversations between regulators and ministries as they debate Russia's future crypto po

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A document that was leaked to the media has details about conversations between regulators and ministries as they debate Russia’s future crypto policy. Bloomberg recently reported that Russians have over 16.5 trillion rubles worth of cryptocurrency (roughly $215 billion) according to an estimate used by the government in its deliberations.

The policy brief that referred to this figure was also quoted later by The Bell news outlet. This publication also published another important outtake. The authors claim that even if Moscow chooses a simplified tax system, the expected tax revenues from digital assets could reach one trillion rubles per year and $13 billion in U.S currency.

This analysis offers several estimates of Russia’s crypto-market size, suggesting that Russia could have a larger share of the global cryptocurrency economy than 12%. The report also notes that some officials have questioned the accuracy of the estimate from the federal analytical center.

Experts explain that crypto-related taxes are collected from two main sources: levies on legal entities such as exchanges or service providers as well as taxes on investments. According to their calculations, the state could receive 90-180 billion rubles per year from licensed crypto trading platforms. Income tax can bring in as high as 606 billion rubles.

Russia has yet to fully regulate its crypto-space, even after it adopted the law “On Digital Financial Assets”. The State Duma is the lower house of Russia’s parliament and a working group is currently preparing legislative proposals in order to close the remaining regulatory gaps.

Bank of Russia introduced a broad ban on the exchange and mining of cryptocurrency. The monetary authority is now in isolation due to growing opposition to its hardline stance regarding decentralized digital money, and negative responses from the crypto community.

The Ministry of Finance, however, has come up with an alternative approach that favors regulation according to strict government rules and not prohibition. Russian government is expected to present different regulatory scenarios by this week.