Mikhail Mishustin, the new prime minister of Russia, believes it is necessary to tax cryptocurrency and plans on doing so.
Russia has seen some major changes over the course of the last week. Vladimir Putin suggested on Wednesday that the country’s constitution be amended to allow lawmakers to name cabinet ministers and prime ministers. This move was widely seen in the west as a power grab by Putin to remain in power after his term as president ends by eventually being named prime minister. On the cryptocurrency front, the new prime minister, Mikhail Mishustin, announced he plans on taxing virtual currencies.
Prime Minister of Russia Says Da for Crypto Taxation
Mikhail Mishustin spoke to the RBC TV news network two days ago where he mentioned his intention. He said:
I am convinced that it is necessary to tax such operations, and to correctly assess any economic consequences of using cryptocurrencies.
Mishustin is not a fan of Bitcoin and other virtual currencies as he feels they have no concrete backing, such as gold. Back in November 2018, he said that alternative payment systems to the Russian ruble (crypto) should not be allowed. He does recognize the power of blockchain technology but sees it as a disrupter. He said:
These digital platforms offer a new efficiency, but this is a threat to entire sectors of the economy. Airbnb is great, but it is a threat to hotels. What will happen to the automotive market due to the emergence of platforms and unmanned vehicles, for instance…nobody knows.
Legitimizing Cryptocurrency?
Currently, virtual currencies have no legal status in Russia. However, this is likely to change if Mishustin wants to officially tax crypto. Anti Danilevski, founder of the KickEx crypto exchange, believes taxation will bring about legitimization for cryptocurrencies in Russia.
Danilevski says:
I think the arrival of new Prime Minister Mikhail Mishustin increases the likelihood of Russia putting further protections in place for crypto (investors) and enterprises. What they do now is critical.
The Russian government has grappled with creating legislation that fully addresses virtual currencies, resulting in a number of delays. One troubling proposal that surfaced late last year was the creation of statutes that would enable the government to seize Bitcoin and other cryptocurrencies.
A member of the Russian parliament, Nikita Kulikov, told RBC at the time:
The constant growth trend in crimes using virtual assets, and the lack of consumer protection in the face of this kind of criminal onslaught, naturally dictate the need to develop mechanisms for legal regulation and control of virtual asset exchange.
Of course, to seize crypto, the government would have to legalize its use. With Prime Minister Mikhail Mishustin planning on taxation, it could mean legalization could be closer than ever.
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