Connect with us

Regulation

Russian President Putin Signs Game Changing Crypto Taxation Law

Published

5 hours ago

on


Russian President Vladimir Putin has signed the final law on crypto taxation while recognizing digital assets as property. This taxation law will also be applicable for currencies used for foreign trade settlements “within the framework of the experimental legal regime (ELR).”

Russian President Putin Exempts Bitcoin, Crypto from VAT

As per the new Russian regulations, mining and sales of digital currency won’t be subject to value-added tax (VAT). Furthermore, services related to transactions within the electronic payment system (EPR), including crypto, will not incur tax liabilities.

On the other hand, operators of crypto-mining infrastructure will need to notify tax authorities regarding users using their services for crypto issuance. Failure to submit this information in a timely manner could attract a fine of 40,000 rubles.

As per the document signed by Russian President Putin, cryptocurrency earned through mining will be classified for personal income tax purposes. The tax calculation will happen based on the market value of the currency at the time of acquisition. The draft law says that Russia will allow deductions for mining-related expenses.

Income from the acquisition, sale, or other transactions involving digital currency will be taxed under a two-tier system: a 13% rate for income up to 2.4 million rubles, and a 15% rate for income exceeding that amount. This income will be included in the same tax base as earnings from securities, bank deposits, and other sources. For corporate income tax, digital currency mining will be taxed at the standard corporate rate of 25%, set to take effect in 2025.

The development comes at a time when other markets such as Hong Kong plan absolute exemption of crypto taxation. As Hong Kong seeks to become Asia’s crypto hub, this move will likely attract more investor capital, especially from regions like China that have hostility towards digital assets.

Crypto Taxation Law Comes With Some Restrictions

The crypto taxation law introduced by Russian President Putin comes with some restrictions from organizations and individual businessmen engaged in cryptocurrency mining and sales. As per the new regulations, these entities won’t be eligible to switch to the simplified taxation system i.e. the single agricultural tax, or the “Automated Simplified Taxation System”.

Additionally, the patent system and the self-employed tax regime will not apply to digital currency mining and transactions. The law will come into effect on the date of its official publication, with certain provisions subject to different implementation timelines.

Ever since the Ukraine war, Russia has been leveraging Bitcoin to evade Western sanctions. At the BRICS summit last month, the member nations also had a discussion of using crypto for cross-border payments.

✓ Share:

Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Regulation

Japan FSA Issues Warning To Bybit And 4 Other Exchanges, Here’s Why

Published

7 minutes ago

on

November 29, 2024

By


Japan’s Financial Services Agency (FSA) has issued warnings to five overseas cryptocurrency exchanges, including Bybit Fintech Limited, KuCoin, MEXC Global, Bitget Limited, and Bitcastle LLC. These exchanges are accused of operating in Japan without proper registration, violating the country’s cryptocurrency regulations.

Japan FSA Issues Warning To KuCoin, Bybit, and Others for Violating Crypto Laws

According to a CoinPost report, Japan’s FSA has flagged five crypto exchanges for providing services to Japanese users without mandatory registration. The warned exchanges include KuCoin, Bybit, MEXC Global, Bitget, and Bitcastle. These platforms were engaging in crypto trading activities in Japan without authorization from the FSA or local financial bureaus.

Operating without registration raises serious concerns regarding the oversight of these platforms. Japan’s legal framework for cryptocurrencies ensures that registered exchanges adhere to strict compliance measures designed to protect customers. The unregistered top crypto exchanges bypass regulations, exposing users to significant financial risks.

Moreover, the FSA emphasized that unregistered exchanges lack regulatory supervision, making it difficult to manage operations responsibly. The absence of asset segregation poses a major issue, as platforms may mix customer funds with operational assets.

Users of unregistered platforms are also deprived of legal protections provided under Japanese law. In disputes or unexpected situations, such as insolvency or security breaches, customers are left without avenues for compensation. The lack of regulatory compliance leaves them vulnerable to potential losses.

Japan’s Legal Framework for Cryptocurrency Exchanges

Under Japanese law, any company offering cryptocurrency trading services must complete registration with the Japan FSA or a local financial bureau. This requirement ensures that the platforms operate within a robust regulatory structure. Registered exchanges must implement stringent safeguards for asset management and ensure transparent operations.

The Japan FSA’s warnings remind users to verify crypto platforms’ compliance status. Japan takes strict action to uphold consumer protection and maintain market integrity.

Additionally, this warning aligns with Japan’s broader strategy to tighten its grip on the cryptocurrency sector. According to a recent report, the government has restructured its Web3 leadership to enhance regulatory clarity and support innovation in digital assets. 

As Japan reclaims its leadership in the crypto and Web3 space, its regulatory approach will be critical to ensure user trust across the industry.

With the increased global regulatory outlook, the UK’s Financial Conduct Authority (FCA) announced plans to finalize comprehensive crypto regulations by 2026. This move will align with global leaders like Hong Kong and Singapore, addressing trading platforms, crypto lending, and stablecoins. 

✓ Share:

Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Continue Reading

Regulation

Coinbase ends USDC rewards in EU amid MiCA compliance

Published

6 hours ago

on

November 29, 2024

By


Coinbase pushes for court intervention to obtain SEC documents on crypto regulations
  • Coinbase plans to end support for USDC earn program for EU customers on December 1, 2024.
  • The exchange cites EU’s MiCA rules that go into full implementation on Dec. 30 for the decision.

Coinbase has notified its customers that the exchange plans to discontinue the USDC rewards program by Dec. 1.

Coinbase, which announced the delisting of non-compliant stablecoins in the European Economic Area earlier in the year, is taking this step to sunset the USDC Rewards program.

The program has been available to the EEA’s 30 countries – which includes 27 that form the EU. MiCA stablecoin laws’ rollout is the reason for Coinbase’s decision, the exchange noted in the update that circulated online on Nov. 28.

Marina Markezic shared the Coinbase announcement on X:

MiCA rules full implementation

According to details in the notice shared on X, Coinbase’s decision to end the yield program for the USDC stablecoin is part of the exchange’s effort to comply with the European Union’s Markets in Crypto Assets rules.

MiCA regulation of stablecoins went into effect in June, but the rules will come into full effect on December 30, 2024.

Various crypto companies and stablecoin issuers have moved to get EU registration and licenses ahead of MiCA full implementation. However, some industry players plan to delist certain stablecoins in the region. Notably, this also sees initiatives to launch EU-compliant fiat-backed coins.

Earlier this week, Tether, the issuer of the world’s largest stablecoin by market USDT, announced its decision to end support for Tether Euro (EURT). This is a Euro-pegged stablecoin that has also been delisted by other providers. Tether said it will halt EURT support until when there “a more risk-averse framework is in place.”

Tether chief executive officer Paolo Ardoino commented via X:

Tether is however investing in Quantoz Payments, a company issuing the MiCA-compliant stablecoins EURQ and USDQ.

Share this article
Categories
Tags





Source link

Continue Reading

Regulation

Coinbase CEO Blames Gensler & Warren for Costing Kamala Harris the US Election

Published

2 days ago

on

November 28, 2024

By


Coinbase CEO Brian Armstrong has called out SEC Chairman Gary Gensler and Senator Elizabeth Warren as the reason for Democratic ticket hopeful, Kamala Harris losing the 2024 US presidential election.

Brian Armstrong’s comments indicate that the Biden administration’s regulation of cryptocurrency, spearheaded by Gensler and Warren, damaged the Democratic Party’s chances at the polls.

Coinbase CEO Stance on Gary Gensler & Senator Warren

In an X (formerly Twitter) post, Coinbase CEO Brian Armstrong highlighted how the actions of SEC chair Gary Gensler and Senator Elizabeth Warren negatively affected the crypto space which was backed by tech industry and young people. Armstrong stated that the rigidity of the stance on cryptocurrency especially the regulation environment under Gensler made many innovators and tech supporters turn against the Biden administration.

Armstrong said that Senator Warren and Chairman Gensler attempted to “unlawfully kill our entire industry” claiming that there has been a clear effort to undermine the operations of crypto businesses and by extension technological advancement. He noted that the very crackdown on Ripple and other firms eroded the support of the voters who voted for cryptocurrency as a tool for economic growth and freedom especially among the young people and technology influencers.

The discussion escalated when personalities like Marc Andreessen, founder of Mosaic web browser, and Elon Musk expressed similar opinions. Andreessen mentioned the issue of debanking which affects many tech and crypto business people, pointing out that about 30 tech founders have been barred from banking services otherwise related to their business activities. Elon Musk, who has made numerous statements on various political topics, shared his thoughts on the matter on Twitter, pointing at the possible involvement of financial institutions and regulatory authorities in aiming at innovative industries such as cryptocurrencies.

Role of Elizabeth Warren in Crypto Regulation

Cryptocurrency has always been a subject of concern for Senator Elizabeth Warren. She has called for more stringent measures in the industry due to concerns over customer protection and sustainability.

Nevertheless, according to Brian Armstrong and others, her policies have been detrimental for the overall tech industry. They accused Warren of creating a culture of regulation overreach that hampered innovation and discouraged investment from young entrepreneurs and tech startups that were crucial to the party.

Some of the critics of Warren have accused her of being against the growth of decentralized cryptocurrencies, especially among those who view it as a means of advancing financial inclusion and economic freedom. From Armstrong’s perspective, the adverse impacts of this regulatory environment seem to have potentially influenced a shift in voter perception, and therefore affected the Democratic Party in the election that led to the victory of Donald Trump.

Armstrong’s social media posts also included a warning for the Democratic Party:

“The Democratic Party should realize Warren is a liability and further distance themselves if they want to have any hope of rebuilding.”

Meanwhile, with SEC Chair Gary Gensler stepping down from his position on January 20, 2025, and Trump’s administration planning to create a dedicated position to oversee crypto policy, hopes of better crypto regulations have risen significantly.

✓ Share:

Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Continue Reading

Trending

Copyright © 2024 coin2049.io