Russia Expands Crypto Use in Trade: Tax Breaks, Mining Rules, and De-Dollarization Efforts

Russia is solidifying its position as a key player in the cryptocurrency landscape by formally recognizing digital currencies like Bitcoin (BTC) as property in international trade. This move, endorsed by President Vladimir Putin, comes under an Experimental Legal Regime (ELR) designed to integrate crypto into Russia’s economic framework while providing regulatory clarity.

One standout aspect of this framework is the exclusion of cryptocurrency transactions from value-added tax (VAT), creating a tax-friendly environment that could encourage greater adoption among individuals and businesses. Income from crypto mining is categorized as “income in kind,” taxed at market rates, with allowances for mining expenses. However, corporate mining revenues will be taxed at a standard 25% rate starting in 2025, reinforcing compliance measures such as mandatory disclosures to tax authorities. Failing to report could result in penalties of up to 40,000 rubles.

Additionally, the law introduces a progressive tax structure for trading and selling digital currencies, with a 13% tax on income up to 2.4 million rubles and 15% on earnings exceeding that threshold.

This latest development highlights Russia's dual goals of strengthening its crypto ecosystem and reducing reliance on the U.S. dollar in trade—a step towards de-dollarization. President Putin joins global leaders like Donald Trump in showing an increasingly pro-crypto stance, emphasizing the role of digital assets in shaping future economic policies.

By framing cryptocurrency as a tool for innovation and economic independence, Russia’s comprehensive approach signals a bold leap into a digitized financial future.