Russian tax authority says crypto payments should fall under foreign trade contracts

Russia’s Federal Tax Service jumped in discussion on the crypto bill proposed by the Finance Ministry of Russia. 

Russian citizens are very adaptive to the crypto and blockchain industry and it can be seen by their holdings of asset worth, which is at the top among high-value holder countries. However, under the crypto bill 2021, Crypto trading is legal in the Russian Federation but still, Russia is working to introduce a new crypto bill to keep the regulation system at a better level and also to kick out bad actors & risk away from crypto adoption.

On 20 April, the local newspaper Izvestia reported that Russia’s Federal Tax Service (FTS) released its statement on the crypto use in the payment system, under the crypto bill of Russia which was proposed by the Russian finance ministry. 

According to FTS, crypto payments should be allowed for businesses in Russia but it should be selective, and also it should be under the foreign trade contract laws. 

“To let corporate entities pay for goods and services according to foreign trade contracts and to receive revenue from foreign entities in digital currency,” Reportedly FTS said

However, to some degree, this opinion from the Russian Tax authority is wrong for true crypto lovers, who see crypto as Currency but overall it is a positive sign that the agency is in favor of crypto-based payment systems. 

With this opinion of the FTS agency, two things can be concluded. The first conclusion is that Russia may introduce crypto payments provisions alongside the use of crypto in payment options with a high tax system. Secondly there are chances that common citizens will not get legal approval to use crypto payment options legally, and probably it will be allowed for big companies or Russian government Companies. However here it will be too early to comment on such things but past stances by the Russian government are enough to consider such assumptions.

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