New era of encryption! Putin signs encryption tax law, Russia recognizes BTC as an asset

International encryption new situation

With Trump set to take office in January next year, his campaign team revealed that Trump plans to accumulate 1 million BTC in the next five years and designate it as a strategic reserve asset. This may not only further stimulate the Cryptocurrency market in the United States, but also make Trump's Cryptocurrency policy the core focus of the competition between the United States and Russia from an international financial perspective.

Recently, Russian President Putin signed a new encryption tax law, which not only categorizes Bitcoin as an 'asset' for the first time, but also cancels the value-added tax (VAT) for cryptocurrency transactions.

Russia: BTC officially included in the financial system

According to a new bill passed by the Federation Council of the Russian Parliament, Russia has established a comprehensive tax framework for cryptocurrency transactions and mining activities. In addition to exempting value-added tax on cryptocurrency transactions, specific individual income tax rates are also specified.

From 2025, individuals with a digital currency personal annual income exceeding 2.4 million rubles (about 25,000 U.S. dollars) will be subject to a 15% personal income tax, while those below this standard will remain at 13%.

In addition, the mining industry's income from encryption will be taxed based on market value, and mining companies are required to report customer information to tax authorities in order to increase transparency and combat illegal activities.

The Russian government has also restricted the power consumption of unregistered individuals conducting Mining, limiting it to no more than 6000 kilowatts per month, in order to prevent illegal Mining and protect household power resources.

However, the restrictions in the new Russian law have also sparked some criticism. For example, the requirement for Mining companies to disclose customer information may drop the confidence of international encryption enterprises in the Russian market. In addition, the high tax rates set for Mining activities may also limit new entrants, further exacerbating the risk of market monopoly.

Russian strategic calculation

A series of encryption policies promoted by Russia are seen as an important part of the country's 'de-dollarization' strategy. With the accelerated de-dollarization plans of BRICS countries, BTC and other decentralized assets are now regarded as important tools to weaken the dominance of the US dollar.

Under the pressure of financial sanctions in Western countries, Russia hopes to establish an independent economic system from the US dollar through encryption assets such as BTC. This can be seen from the recent involvement of the Russian sovereign wealth fund in BTC mining investment, indicating that the Russian government recognizes the financial and strategic value of digital currency.

The new encryption pattern is emerging globally

Interestingly, Trump's encryption policy forms an interesting contrast with Russia's latest legislation: both seem to be creating a more friendly environment for the encryption industry through legislation, but the strategic intentions behind them are completely different.

For Russia, Crypto Assets are a tool to counter financial sanctions from Western countries; for Trump, Crypto Assets are a potential weapon to strengthen the dominance of the US dollar.

Anyway, Russia's new tax law and the future policy changes in the United States after Trump took office have once again put the global encryption market in the limelight.

Some analysts believe that the policy direction of these two superpowers may prompt other countries to reassess the status of cryptocurrencies. If including the BRICS countries, the world will begin to attach importance to the strategic position of digital assets such as BTC, which is expected to create a huge market demand for BTC and become the biggest Favourable Information of this bull market.

Disclaimer: The market is risky, and investment should be cautious. Analyst views are for reference only. Users should refer to more diverse indicators to determine whether to invest and consider whether any opinions, views, or conclusions in this article are applicable to their specific situation. Investment based on this is at your own risk.

New Development in Encryption! Putin Signs Encryption Tax Law, Recognizes Bitcoin as Asset. This article was first published in 'Encryption City'.