Russia Might Gain Up To 13 Billion USD In Crypto Taxes

Russia is currently one of the biggest countries in the world associated with cryptocurrencies despite the government officials looking negatively on the concept of cryptocurrencies. The country has recently expressed its desire to properly regulate and tax this potential goldmine and they will most likely succeed as more and more of its citizens are using digital assets. 

Russia Gains 13 Billion In Crypto Taxes

The Russian government with its desire for crypto regulation has reported that if it is successful in its regulation and it properly imposes a tax on all transactions it will be able to generate a huge amount of money. They estimate that they’ll be making around 13.3 billion in US dollars just from taxation alone. 

This large estimate of potential income from the government is most likely going to be used as an incentive for Moscow to go along with the regulation and taxation of all crypto assets. There have been talks of government officials wanting to ban cryptocurrencies altogether but this potential source of funds might be able to change their minds. 

Internal analysis from the Russian government indicates that they have multiple options for assessing the value they can get from the crypto market. Estimations gathered from reliable sources like Coinmarketcap.com show that the global value for the crypto market in 2021 was somewhere around 1.87 Trillion US Dollars. Russia’s share in that market is estimated to be at least 12% which roughly shows that Russia has 224.4 Billion USD in the market. 

These are estimates from reliable global sites and platforms and the Russian government came up with different numbers. They state that the Kremlin might be able to generate an income from taxation somewhere between 90 billion RUB to 180 billion RUB, per year. When converted, that’s around 1.2 billion to 2.4 billion USD per year. Furthermore, they could inject up to 10.4 billion USD from levies into the crypto sector as well.

This month, Mosco has disclosed that they have set a new deadline for crypto regulation and they claim that they should be able to form a consensus by the end of the month if things go well.

Alexey Moiseev, the Deputy Finance Minister of the country states everything is happening quickly in the government and because of this, they will be able to make a decision quickly. Further stating that he expects a decision to come by the end of the month.

Conclusion

Russia’s stance on banning cryptocurrency was scary news, especially for Russian citizens. This current development might sway the Russian government to focus more on regulating cryptocurrency rather than banning it outright.

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.