Russia plans to collect $13 billion in taxes if the crypto bill passes.
According to a government document cited by the media, authorities aim to receive more than $13 billion in tax payments from Russia's crypto market. The prediction comes at a time when Russian institutions are debating the future of cryptocurrencies in the nation.
The policy brief mentioning that figure was then quoted by The Bell news site, which also published another important outtake. Even if Moscow opts for a simplified tax structure, the authors estimate that tax receipts from the digital assets business might equal one trillion rubles per year, or $13 billion in US currency.
The study offers several estimates of the size of Russia's crypto sector, estimating that the country's part of the global crypto economy might be as high as 12 percent. At the same time, the study acknowledges that several authorities have questioned this assessment, which was created by the federal government's analytical unit.
Taxes on legal companies, such as exchanges and service providers, as well as taxes on investments, are two key sources of crypto-related taxes, according to the experts. According to their estimations, licenced crypto trading platforms can bring in between 90 and 180 billion rubles per year, while income tax can bring in up to 606 billion rubles.
Russia has yet to fully regulate its crypto ecosystem, despite the passage of the "On Digital Financial Assets" law. A working group in the Russian parliament's lower house, the State Duma, is currently formulating legislative ideas to close the remaining regulatory gaps.
The Bank of Russia suggested a broad ban on cryptocurrency use, trade, and mining in January. However, the monetary authority has subsequently found itself isolated, with rising resistance to its strong stance on decentralised digital money and negative comments from crypto enthusiasts.
Meanwhile, the Ministry of Finance has devised its own alternate strategy, favouring regulation over prohibition under rigorous government guidelines. By the end of this week, the Russian government, which is siding with the Treasury Department, is scheduled to submit various regulatory options.
A earlier notification titled "On Digital Currency" from the ministry will detail a public consultation to:
1 – Establish regulations for the cryptocurrency bill
2 – Attract the attention of businesses, corporations, individuals, and legal bodies.
According to the second notification, the consultation may lead to another for the required adjustments to various federal laws related to digital currency.
The Crypto Bill Will Be Released
The bill's draught has not yet been made public as of this writing. Nonetheless, Russian Finance Minister Anton Siluanov anticipates the public consultations on the cryptocurrency bill to be completed by March 18.
It could be issued in a few weeks, according to a ministry official. "There are various steps to the public discussion procedure. We are currently in the process of telling people about the start of development."
Because of the perceived risks to financial stability, the Bank of Russia had previously opposed cryptocurrency trade and mining.
However, with the finance minister adamant about its implementation, Russian President Vladimir Putin has urged the public to reach an agreement.
Russia is unable to ban Bitcoin.
Siluanov stated at the ministry's discussion with the central bank last Wednesday that banning crypto is as impossible as banning the internet in Russia.
Rather than outright outlawing it, Siluanov proposes regulating the already-existing digital token business so that the government can supervise it while also allowing it to contribute to the country's capital growth.
Russia stands to benefit greatly from crypto taxes on realised gains on deposited and withdrew fiat assets.
According to a government document, analysts estimate that the country may earn more than $13 billion in tax payments from the crypto market.
Cryptocurrency has a lot of money.
Taxes in the crypto business can be collected in two ways, according to economists: as levies on legal companies such as exchanges and service providers, or as taxes on investments.
They expect to earn between 90 and 180 billion rubles each year from legal and licenced crypto trading sites, as well as roughly 606 billion rubles in income taxes.
According to a Bloomberg article, Russians own about 16.5 trillion rubles in cryptocurrencies, or around $215 billion.
Russia controls around 12% of the global crypto economy, but its growth potential is limitless once the business is legalised.
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