This bill aims to exempt cryptocurrency transactions from value-added tax (VAT). For the law to take effect, it now only requires the signature of President Vladimir Putin. The Federation Council stated that the bill was approved on Wednesday, following its passage through the lower house, the State Duma, a day earlier.

The tax law amendments prepared by the Russian government define digital currencies as property. Under the proposed changes, cryptocurrency transactions will be exempt from VAT, and income from trading will be subject to the same tax rates as income from securities transactions.

The maximum personal income tax rate will be 15%. This information was previously reported by the Russian news agency Interfax. Once the law comes into effect, cryptocurrency mining infrastructure operators will be required to report client information to tax authorities. Income from mining activities will be taxed based on its market value at the time of receipt.

The bill, having passed both Russia’s lower and upper houses of parliament, now only awaits President Vladimir Putin’s signature to bring the new tax regime into effect.

The country has recently been working to strengthen regulations on crypto assets, particularly cryptocurrency mining. Earlier this month, the Russian government introduced a limit restricting unregistered individuals from mining Bitcoin with a monthly power consumption exceeding 6,000 kilowatt-hours.

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