Russia has implemented a new law to tax digital assets, effective August 18, 2025, and is preparing for the widespread introduction of its central bank digital currency, the digital ruble, slated for July 1, 2025. This dual approach signifies Russia's strategic integration of digital assets into its financial system, establishing clear regulatory and taxation guidelines.
The new digital currency taxation law classifies cryptocurrencies as property, with taxes calculated on the difference between an asset's value and its acquisition or mining costs. Individuals will face a personal income tax rate of 13-15% on cryptocurrency sales, while legal entities will be subject to a 20% profit tax, increasing to 25% in 2025. Mining and the sale of digital assets are exempt from Value-Added Tax (VAT). Mining infrastructure operators are required to report to the Federal Tax Service (FTS) or face a fine of 40,000 rubles. The law also clarifies that self-employment and simplified taxation systems are not applicable to cryptocurrency mining or trading. This legislative framework, with roots in a 2020 bill, underwent significant revisions, with government approval of amendments on November 15, 2024, and final passage by the State Duma in November 2024.
The digital ruble's mass implementation, scheduled to begin July 1, 2025, will be voluntary for individuals but mandatory for systemically important and universal banks. Subsidiaries of major international banks, including Raiffeisen Bank International and UniCredit, are directed to participate by July 2025, with potential penalties for non-compliance. The digital ruble aims to streamline transactions for pensions and social benefits, though fraud concerns have been raised. In a notable policy shift, the Russian Central Bank proposed in March 2025 to allow "specially qualified" individuals—those with over 100 million rubles in securities and deposits or an annual income exceeding 50 million rubles—to invest in cryptocurrencies under a three-year experimental legal regime. These comprehensive regulatory actions are projected to generate significant annual budget revenues, estimated between 50 billion and 200 billion rubles, impacting financial innovation, investor behavior, and Russia's global digital economy standing.