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Russian President Putin Signs Game Changing Crypto Taxation Law

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3 hours ago

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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.

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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.





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Coinbase ends USDC rewards in EU amid MiCA compliance

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4 hours ago

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November 29, 2024

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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.

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

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1 day ago

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November 28, 2024

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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.

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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.





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Pro-XRP Lawyer John Deaton Endorses Paul Atkins as Potential SEC Chair

Published

2 days ago

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November 28, 2024

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Pro-XRP lawyer John Deaton has endorsed Paul Atkins as a potential candidate to succeed the current U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler. John Deaton, a leading voice for crypto regulation change, has accused the SEC under Gensler of abuse of power and impropriety, especially in the application of crypto laws. He called for an immediate change to address issues that would help the agency to be accountable and ethical.

John Deaton Calls for SEC Reforms, Supports Paul Atkins for Top Leadership Role

John Deaton has urged the SEC to change, saying that SEC has been oppressive to the crypto industry and startups under Gensler. He also claimed the SEC was using rather hostile measures and offered little guidance to firms operating in the crypto space. This has created a problem and hindered innovation in the industry..

As part of his recommendations for reform, the Pro-XRP lawyer endorsed Paul Atkins, a former SEC commissioner known for his pro-digital assets stance. Deaton expressed confidence that Atkins, if appointed, will steer the SEC toward a more balanced and transparent regulatory framework.

The Pro-XRP lawyer added, 

“Paul Atkins is great and I’ll certainly welcome and support him if selected. He’s light years ahead of Gary Gensler – who’s, without question, the worst SEC Chair in modern history.”

This follows Donald Trump’s election victory and his pledge to fire Gary Gensler on his first day in office. Gensler will officially step down as SEC Chair on January 20, 2025, coinciding with Trump’s inauguration. 

Accountability and Ethical Overhauls At the SEC

John Deaton has urged the next SEC chair to investigate alleged misconduct by agency staff and take decisive action against those involved in unethical practices. He criticized the SEC’s handling of regulatory decisions. Earlier on, Deaton questioned the close relationship between Gensler and Bankman-Fried, referencing private meetings and political contributions tied to FTX.

Deaton emphasized the need for new leadership to address these issues transparently, ensuring the SEC operates within ethical and legal boundaries. He suggested that the incoming chair should immediately implement changes to restore credibility, including terminating staff involved in past misconduct.

Deaton emphasized, 

“Whoever’s the Chair, he/she goes into the SEC with a blow torch and chainsaw and fires anyone who participated in the gross overreach and misconduct during the last four years.”

According to reports, Paul Atkins is a leading contender to replace Gary Gensler, whose tenure as SEC Chair ends in January 2025. Atkins has previously advocated for reducing regulatory burdens and restructuring the SEC to improve efficiency. His approach aligns with calls from industry leaders for a more crypto-friendly regulatory environment.

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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.





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