The world’s biggest country has much to contribute to Bitcoin’s success, particularly in terms of mining, development, and adoption:
As a world leader in (renewable) energy production and “blessed” with a famously cold climate, Russia is well-positioned to become a major player in the Bitcoin mining industry.
Russia is also renowned for its many skilled IT professionals. Vitalik Buterin is probably the most famous example of the many Russian cryptocurrency developers advancing the state of the art.
Lastly, Bitcoin adoption is primed to take off in Russia. Russian regulators are putting forward clear and consistent regulations, which clarify Bitcoin’s formerly murky legal status within Russia’s borders. The majority of Russians are aware of Bitcoin according to a recent survey, so the potential for rapid and widespread adoption is real.
If you’re in Russia and looking to get involved in Bitcoin in the quickest and easiest way possible, this guide covers all the essential information regarding Bitcoin taxes and regulations in your country. This guide also explains how to use your any credit or debit card issued by either VISA or MasterCard to buy Bitcoin with Rubles in less than half an hour.
Russian Bitcoin Regulations
In earlier days, Russian authorities took a dim view of Bitcoin. For example, Roskomnadzor enacted measures in late 2014 and early 2015 to prevent citizens from transacting with or mining Bitcoin, or even from accessing information about Bitcoin. Various crypto news and info sites, as well as exchanges, were blocked for Russians.
However much such restrictions may have chilled Russia’s adoption of Bitcoin, cryptocurrency was never explicitly banned in a coordinated manner. Certain agencies were more tolerant than others and their positions often altered over time. Naturally, this led to much confusion over Bitcoin’s legal status for many years.
At this time, we know that Bitcoin is almost certainly legal in Russia, as in May of 2018 the Duma adopted three bills regulating cryptocurrency within Russia. While the legislation leaves much to be desired, it clearly states that “digital assets” are to be considered legal. Although not explicitly stated, it can be assumed that Bitcoin falls within this category, given that at least one Bitcoin exchange and several businesses are currently operating within Russia. Furthermore, Coinmama has never experienced any legal difficulties when selling bitcoins to our Russian users. Finally, as no specific law forbids trading in Bitcoin it should therefore be considered legal, according to a Moscow-based lawyer.
Russian Taxation of Crypto
According to a report by Izvestiya from July of 2018, cryptocurrency mining and trading will be taxed at 13%, according to the rules of the existing Internal Revenue Code. The bills passed by the Duma do not include any further, specific information on Bitcoin’s tax status. Therefore, standard income tax laws currently apply to Bitcoin transactions, which are considered to be currency transactions.
Russian citizens are therefore obligated to calculate and report profits and losses derived from their crypto activities. This document from the Russian Ministry of Finance may shed further light on the matter, although the recommended course of action would be to seek the advice of a tax or legal professional.
Russian Blockchain Projects
Russia companies and government agencies are keeping pace with blockchain innovation. Currently, numerous promising blockchain projects are being pursued to improve efficiencies and extend capabilities across various sectors.
Russia has long been at the forefront of the “de-dollarization” movement, which seeks to shift the world away from over-reliance on the US Dollar for international trade and investment. As trustless, decentralized money forms a solid basis for trade in a multipolar world, cryptocurrency technology may well be incorporated by alternatives to the Dollar-based monetary system.
Russian agencies and companies are currently experimenting with applying blockchain technology to fields as diverse as tracking payments for aircraft refuelling, management of employment contracts, and the allocation of stalls for farmer’s markets.
How to Buy Bitcoin in Russia
Interested in becoming a part of this transformative new industry? Coinmama allows Russians to buy bitcoin (BTC) with Rubles, using either their credit or debit cards. At this time, only cards issued by VISA or MasterCard are supported.
Here’s how to get started with building up your Bitcoin portfolio, in 4 easy steps:
Step 1 – Create Your Coinmama Account:
- Head to the Coinmama website and select the blue “Sign Up” tab.
- You’ll need to enter your email, password, first name, last name and your country of residence.
- If you already have an account, just sign in with your login details.
- For more information on how to create an account with us, click here.
Step 2 – Verify Your Account:
- To purchase bitcoin (BTC), you first need to become verified.
- It’s necessary to upload your ID or passport, plus various other documents depending on which level of verification you wish to reach.
- For further help with account verification, please click here.
Step 3 – Purchase Your Bitcoin:
- Once signed in and verified, navigate to the “Bitcoin” tab in the top menu bar.
- Once there, you will be presented with several choices: either purchase a set amount of BTC, or enter in a custom amount of up to roughly $5,000 (as of the time of writing) for card purchases. You can also choose to price BTC against USD or EUR.
- Supply your Bitcoin wallet address. This address is where we’ll send the coins which you buy. You can re-use this address for subsequent purchases or get a new one from your wallet; it’s up to you.
- Next, select the “Proceed to checkout” button.
Step 4 – the Checkout Page:
- Complete the form with your relevant details. Make sure that your card or banking details, such as your name, correspond with the details you supplied when creating your Coinmama account.
- Finally, proceed to payment by clicking on the “Pay now” button. For card purchases, kindly note that only cards issued by VISA or MasterCard are accepted.
Once your card payment has been made, the order status will read “In Process.” This means that your order is being processed by the bank or card company. Credit card orders will ordinarily be processed within minutes.
Once payment has been made, our BTC transaction to your wallet’s address then needs to be confirmed by the Bitcoin network. In approximately 10 minutes, a Bitcoin payment will be broadcast from Coinmama’s wallet to the Bitcoin address you supplied in Step 3 point 3.
Note that during times of especially high traffic, your transaction may take longer than normal to appear as confirmed within your wallet. Ordinarily, the transaction will be confirmed within 10 minutes.
For large amounts, it’s recommended that you wait for up to 5 more confirmations. You may then regard the transaction as final and spend your new coins.
Russia has gotten off to a slow start in the crypto scene compared to certain other countries, primarily as a result of the cautious and occasionally contradictory approach of Russian regulators. However, as regulations are getting worked out, the brakes are off and it’s expected that Russia will soon catch up to other nations, if not overtake them.