The crypto-verse has taken a tour around the world. Governments large or small, war-torn or financially in need, have investigated the crypto-industry. Russia has tried to embrace the digital world. As the country continues its attack on Ukraine, it also appears to be regulating the digital asset industry. Now, according to its latest bill, digital asset issuers are likely to be exempt from paying value-added tax.
Reuters has revealed that Russian lawmakers in the Duma have continued to approve a crypto-related draft law. The members apparently gave a green signal in the second as well as third lectures that took place on Tuesday. The law focuses on exempting value-added tax, especially for digital asset issuers.
In addition, tax rates on the proceeds from the sale of these cryptocurrencies will also be part of the law. Currently, the rate on transactions is 20 percent. However, the new law will reduce the same to 13 percent for companies based in Russia. The rate for foreign crypto issuers will be about 15 percent.
This law has yet to be approved by the upper house as well as Russian President Vladimir Putin.
Russia and its Confusing Position on Cryptocurrencies
Similar to several other governments, there was a separation due to crypto-regulations. The Russian central bank has continued to call on the government to impose a general ban on the industry. The bank suggested that crypto financial instability among Russian citizens would further increase.
The ongoing war did bring about changes. With financial sanctions imposed on the Russian government, crypto was the only way forward. Russia’s central bank has even allowed the country’s largest bank Sberbank to issue cryptocurrencies.
It seems that the aforementioned draft law is likely to get a green signal. With the country slowly moving into the crypto-verse, high tax rates will certainly be repulsive. Consequently, the community speculates that the VAT exemption would fall through.