On Tuesday, the Russian parliament approved a bill that aims to exempt crypto-currency issuers from value-added tax (VAT). The information provided by Reuters made the investors already present in the market very happy. And for those who will be interested, it seems that the timing is perfect to become investors in turn.
Huge change of mentality in Russia
According to a Reuters report on a bill that has been approved by the Russian parliament, cryptocurrency issuers will no longer be required to pay VAT. But not only will the VAT exemption be on the agenda, the new bill also provides for a new tax rate of 13% for Russian companies and 15% for foreign firms on income tax from cryptocurrencies.
This bill was approved by the Duma deputies in the second and third readings. However, not all is won. The project still needs to be approved by the upper house, as well as by President Vladimir Putin, before it comes into force. In any case, in anticipation of this eventual adoption, this represents a huge change in mentality in Russia. After all, cryptocurrencies were harshly criticized there before.
From abandoning cryptocurrencies to eventual adoption
A few months ago, the Russian Central Bank called for a strict ban on cryptocurrencies in the country. According to the institution, digital assets can be the cause of great financial instability for the country’s economy. However, when Russia found itself in international isolation due to the invasion of Ukraine, everything began to change.
The country has become more open to cryptocurrencies, even as its traditional financial system has begun to become fragile due to multiple Western sanctions. Undoubtedly, it is precisely because Russia finally wanted to turn to cryptocurrencies that it has agreed to soften its stance on regulation of the sector.
Diametrically opposed to the vision of the Russian central bank, the country’s largest bank, Sberbank announced that it plans to start issuing cryptocurrencies and allow its customers to use them. But for this she had to get permission from the Central Bank.
Is Russia becoming more crypto-friendly? That is the impression the authorities have been producing in recent weeks. Although they were fundamentally against cryptocurrencies, they seem to be more open to accepting them. Proof of this is the approval by the Duma of a new bill that will allow issuers of digital assets not to pay VAT.
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