Russian lawmakers are actively preparing new legislation to tax cryptocurrencies such as Bitcoin (BTC).

According to the official statement of the State Duma of the Russian Federation, the State Duma Committee on Legislation and Construction on February 15 approved a draft law on taxation of cryptocurrencies. The new law is a set of changes in the federal tax legislation of Russia.

As part of the bill, the Russian government officially recognizes cryptocurrencies such as bitcoin as real estate for the purpose of taxing profits from cryptocurrency trading for Russian citizens. The bill is aimed at all local residents, including citizens and foreigners, as well as Russian and international organizations established in the country.

According to the bill, listed organizations will be required to report their crypto transactions if the total amount of incoming or outgoing transactions exceeds 600,000 rubles ($ 8,100) per year.

The bill provides for penalties for violations such as late reporting and provides inaccurate information with penalties of up to 10% of incoming or outgoing transactions. The proposed penalty for non-payment or incomplete payment is 40% of unpaid taxes and is indicated on the invoice.

Once approved by the commission, Russia’s State Duma is expected to consider the new coding law on February 17, according to official government records.

In January 2021, Russia officially enacted its first cryptocurrency law “on digital financial assets”, which prohibits local residents from paying with cryptocurrencies. While the bill provides legal status for the cryptocurrency industry in Russia, it does not address specific areas of digital assets such as taxes and mining, making the regulatory landscape relatively uncertain.

Source: CoinTelegraph