Russian President Vladimir Putin has given a green signal to a new law that will recognize Bitcoin and crypto as property. The new law comes against the backdrop of pro-crypto Donald Trump winning elections in the USA.
Trump’s upcoming presidency is likely to give a boost to the crypto markets in the USA. With this in mind, Russia’s move is likely an attempt to be in tandem with global peers.
Russia Integrates New Law For Crypto
According to official documents, as Russia looks to regulate its cryptocurrency economy, President Vladimir Putin signed a measure on November 29th, that established the legal basis to tax cryptocurrency mining and transactions.
The new law, which amends the Russian Tax Code, acknowledges digital currency as property. Although mining and sales of cryptocurrencies are free from value-added tax (VAT), the law mandates that mining operators notify local authorities or face a punishment of 40,000 rubles ($380).
Additionally, income taxes, which are tier-based at 13% for profits up to 2.4 million rubles ($22,300) and 15% over that, will apply to cryptocurrency trading.
Donald Trump’s US Election Win Gives Crypto Markets Necessary Boom
The election of Donald Trump as the incoming US president has kept crypto markets afloat since November 5, 2024.
Trump’s success in the election has been attributed by many to the crypto voters. Trump had made pledges to the cryptocurrency community, which has kept many in hopes that the US will become a hub for crypto growth.
Trump had proposed using cryptocurrency to help pay off the country’s rapidly growing $35 trillion debt. Furthermore, soon after Trump’s results were announced, the SEC chair, who is not in the good books of crypto investors, announced his resignation.
Additionally, many are now expecting relaxations in further regulations pertaining to crypto.
Russia Likely To See Crypto Growth In Future
Russia’s new laws come at a time when the nation has seen a rise in demand for crypto and related assets. Research suggests that in 2024, Russia’s cryptocurrency sector is anticipated to generate US$1,637.0 million in revenue.
When compared globally, the United States is now dominating in terms of revenue, with a projected US$9,788.0 million in 2024.
In 2024, the Russian cryptocurrency market is expected to generate an average revenue per user of US$66.9.
When considering the Russian cryptocurrency market particularly, it is anticipated that by 2025, there will be 24.59 million users. According to projections, the user penetration rate—a measure of the proportion of the population that uses cryptocurrencies—will be 16.99% in 2024 and 17.13% in 2025.