How Russia Plans to Handle the Taxation of the Crypto Assets?
The growth of global crypto adoption and their active use in different spheres of human activity leaves no chances for the governments just to ignore it. The financial system we used to know transforms already, therefore, the new assets require regulation and full participation in the lives of the citizens. They need to have a place in the existing legal systems.
However, governments around the world feel confused and struggle to issue proper documents that would regulate the cryptosphere. Without ones, the state treasuries will miss great sums of money that could have complemented it due to the taxes from the crypto activity whose cap keeps growing.
Asia is Ahead, As Always
Eastern Asia turned to become the fastest one. Its countries emphasized the urgent need to regulate cryptocurrencies, and Japan became the first one who actually did it. Its government decided that to legalize cryptocurrencies they need to prepare a legal base and put a tax over each transaction.
Southern Korea thinks that the taxation of the crypto operation should be no less than 20%. Its government equals cryptocurrencies and trading them to the money prizes and winning the lottery. Kyung Pil, the head of Xangle’s research, says that in July, 2020 the Ministry of strategies and finance qualified the income from operations with crypto as “other income”, and their taxation starts from January, 2022.
The national gathering also issued the Law about financial information about virtual assets due to the FATF recommendations. Companies who deal with the virtual assets will now offer their services as a part of the state programs. The financial organizations that already exist will expand the list of their services in direction of digital finance, and it will be a much better alternative to a full ban of cryptocurrencies.
What About Eastern Europe?
Eastern European countries also move towards the taxation of all the operations with cryptocurrencies. For example, Ukraine has already announced their intentions. The holders of the digital assets will have to fill in the tax declarations where they need to inform the state about the amount and price of the crypto assets they hold.
Russia is still uncertain about the cryptocurrency regulation. Vladimir Panushkin, the PR director of RACIB, says that the uncertainty can push the state and its citizens towards such extremes as the full ban of cryptocurrencies and the massive outflow of the “brains” to the countries that are more open to technological innovations. But the lawmakers seem lost at the moment. They clearly don’t understand how they should evaluate the price of virtual currencies.