Russian President Vladimir Putin has signed a law classifying digital assets as property for taxation purposes, offering much-needed clarity to Russia’s burgeoning digital sector. This legislation, which amends Russia’s Tax Code, exempts profits in the sector from value-added tax while subjecting them to income tax. Individual earnings below 2.4 million roubles will be taxed at 13%, while higher incomes face a 15% rate. Corporations, meanwhile, must adhere to a 25% corporate tax rate starting next January. Miners are also required to register with local authorities, with non-compliance risking fines of up to 40,000 roubles.
This move aligns with Putin’s broader acknowledgment of the inevitability of financial innovation. Speaking at the VTB forum “Russia Calling!”, he underscored the resilience of technologies such as cryptocurrencies, highlighting their capacity to adapt despite external restrictions. He cited Bitcoin as an example, rhetorically asking who could possibly ban it, underscoring its decentralised nature and resilience. Putin also linked this technological momentum to shifts in global financial dynamics, including the politicisation of traditional reserve currencies like the U.S. dollar.
Putin questioned the rationale of accumulating foreign reserves that could be politically seized, referencing the freezing of $300 billion in Russian assets by Western nations during the Ukraine conflict. He proposed redirecting funds into domestic infrastructure, logistics, science, and education, which he argued would serve national interests more securely. This philosophy, combined with Russia’s push for digital asset regulation, demonstrates a strategic pivot away from reliance on foreign economic structures.
The Russian president accused the U.S. of weaponising the dollar, a move he suggested has undermined its global credibility and accelerated the search for alternative financial mechanisms. He attributed the dollar’s diminishing role to policies enacted by U.S. Democratic leaders after Donald Trump’s presidency and argued that this decline, independent of cryptocurrency developments, could destabilise American economic influence.
In parallel, Russia continues its efforts to regulate its digital financial ecosystem, including new mandates for block reward miners. These regulations include registration and taxation, alongside operational licensing requirements. Over 150 miners have already filed applications with the Federal Tax Service, marking a significant step in formalising the sector. At the same time, the government has pushed forward its central bank digital currency (CBDC) initiative, aiming to integrate the digital rouble into national payment systems by 2025. However, the Ministry of Trade and Industry has called for delays, citing insufficient infrastructure among retailers. Trade associations have echoed this sentiment, arguing that a rushed implementation could impose undue burdens on businesses.
Despite these challenges, the government views the digital rouble as a tool for reducing costs by eliminating acquiring fees through direct central bank processing. The CBDC, coupled with Russia’s strategic tax reforms, underscores its dual ambition to lead in financial technology innovation and bolster domestic economic resilience. Putin’s remarks and legislative initiatives reflect a clear message: Russia is positioning itself to adapt and thrive within a rapidly evolving global financial landscape.
