New Law Recognizing Bitcoin and Crypto Assets As Property in Russia Passes First Hurdle

Russia may soon recognize Bitcoin (BTC) and other cryptocurrencies as property.

The parliament’s lower house, the State Duma, has reportedly passed the first reading of a bill that would tax digital assets.

According to state news agency RIA Novosti, the proposed legislation requires local and foreign residents and organizations within Russia to report crypto transactions that amount to 600,000 rubles, or about $8,130, per year based on the market price of the cryptocurrency.

Offenders who fail to pay or make incomplete tax payments will pay a penalty equivalent to 40% of the amount due.

Those who submit late or inaccurate information will also be fined 10% of the undeclared amount.

According to the proposal, authorities can request the bank statements of accounts used for crypto transactions.

Before a second vote on the proposal, the State Duma’s Committee on Budget and Taxes will make amendments to clarify which transactions will be exempt from VAT and who will be required to submit reports on crypto transactions.

This article originally appeared on The Daily Hodl.