Russian President Vladimir Putin has signed a law officially recognizing digital currencies as property for foreign trade settlements. The law also exempts crypto mining and sales from value-added tax (VAT) and introduces a taxation framework for mining income and crypto trading.

Under the new experimental legal regime (ELR), mining income will be taxed as “income in kind,” with deductions for expenses. Individual crypto trading income will be taxed at 13% for earnings up to 2.4 million rubles and 15% for higher amounts, while corporate mining profits will face a 25% tax rate starting in 2025. However, miners and traders are barred from preferential tax regimes such as simplified or agricultural tax systems.

The law also mandates reporting obligations for mining operators, with fines of 40,000 rubles for non-compliance. This legislation builds on prior regulations from August, requiring mining operations to be conducted by registered entities. It signals Russia’s attempt to formalize and regulate its growing digital currency sector.