Russia Is Estimated To Make $13.3 Billion In Revenue By Imposing Crypto Taxes

Amid ongoing negotiations for new crypto regulation, the Russian government estimates that if the country introduces regulations on the crypto market and taxes cryptocurrencies, it could generate up to RUB 1 trillion ($13.3 billion) in revenue for the state budget.

It is estimated that Russia will generate $13.3 billion in revenue by levying crypto taxes

An internal analysis prepared for Russian decision-makers and sourced from the news site offers several ways to assess the value of the cryptocurrency market. Based on their estimates on data sources from Coinmarketcap.com, its authors put the value of the global crypto market at $1.87 billion in 2021 and Russia’s market share at at least 12%, equivalent to $224.4 billion.

However, other analysts employed by the Russian government have given different financial estimates, claiming that the Kremlin rakes in between 90 billion rubles ($1.2 billion) and $180 billion ($2.4 billion) a year from taxing crypto exchanges and an additional ruble could generate 606 billion ($8 billion) from taxing Russian taxpayers’ income from crypto investments.

This could bring a total of $10.4 billion in crypto sector revenue to the Russian budget.

Instead of an outright ban, Moscow will regulate and tax cryptocurrencies

Last month, the Central Bank of Russia proposed a total ban on cryptocurrencies in the country. The agency believes that the issuance, circulation, exchange and sale of virtual currency should be banned to prevent fraud or money laundering in criminal cases.

However, this proposal was not welcomed when other ministries of the Russian government rejected it. They proposed legislation to give the government more control.

Earlier this month, it was revealed that Moscow itself set a new deadline for crypto regulation and said it would reach consensus on the matter within a month.

“The government is doing well. I think some sort of decision will be made quickly. My expectation is [quyết định] will be launched within a month,” Deputy Finance Minister Alexey Moiseev said, adding that the “main point” of commonality is that “both we and the central bank are opposed to cryptocurrency settlements.”

Figures from local news site TheBell.io show that the lofty estimate of up to $13.3 billion if taxes are levied on such crypto-related transactions could provide a major incentive for Moscow to regulate and tax cryptocurrencies rather than outright ban them .

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