Russia using crypto to bypass sanctions
On Tuesday, 28 June 2022, RIA Novosti, reported that the Duma state, the lower house of the Federal Assembly of Russia has introduced a bill for taxation on the trading of digital financial assets (DFA.)
Annual 13% tax on crypto exchanges in Russia
Previously, Russia ‘s company tax rate is 20%. According to the bill, for an initial 5 million rubles annually, 13% company tax rate will be applicable for trading through Russian exchanges. A 15% tax rate will be applicable if the amount exceeds this limit. Whereas foreign exchange operators will be charged 15%.
Moreover, the approved crypto taxation bill in Russia also establishes that there needs to be specific laws that can ensure transparency in crypto business and trading. In addition, it provides a complete tax procedure that will help shape Russia’s digital economy.
Russia to leverage crypto, bypassing sanctions.
As Russia and Ukraine are at war, Russia is facing harsh sanctions worldwide. They are looking to leverage the crypto market and blockchain technology to escape economic isolation.
Russia did not initially favor the cryptocurrency and digital assets market. The recent sanctions have severely affected its economy, and now the country is looking to ease its policies for crypto trading. It is expected that digital financial assets trading will strengthen Russia’s overall economy.
Nevertheless, the bill is yet to be reviewed by the upper house of the Russian parliament. It requires the approval of President Vladimir Putin. But the question is, will the use of crypto and other digital assets be beneficial for Russia in bypassing Western sanctions?
In case positive crypto policy is not enough, Russia has announced it will be accelerating the launch of its stable coin, the digital ruble by April 2023. Russian Central Bank first deputy chair Olga Skorobogatova stated in an interview:
I think all self-respecting states will have a national digital currency within three years. […] We should be ready as soon as possible. Plus, this will settle the issue of being blocked from SWIFT, because this integration will make SWIFT unnecessary,”
Author: Wasay Ali
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