Russia Accelerates Crypto Regulation as Country Hits Default

Russia’s State Duma, an assembly with advisory or legislative functions, has approved in the second and third readings a draft law that exempts crypto from value-added tax as the country has faced its first international default since 1918.

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According to Reuters, the new law decreases the tax from 20% to 13% for Russian companies and 15% for foreigners that deal with cryptocurrencies. Yet, the draft still has to be reviewed by the upper house and signed by Russia’s president to become law.

Russia is accelerating with legalization of the crypto market as Western sanctions are putting more limitations on the Kremlin’s ability to sustain cash flow on the international level as catastrophic geopolitical conflict in Ukraine unfolds.

Russia’s CB Makes U-turn on Crypto Allowing Crypto for International Trade

In May, reports said Russia started working on a bill that would legalize the usage of cryptocurrencies for international payments. Russia’s Ministry of Finance was reportedly weighing whether it could use cryptocurrencies for international settlements if these assets were to legalize accordingly. It remains unclear if the ministry has come to any decision on the matter.

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