A legislator of the Duma proposes to create a strategic reserve of BTC in Russia

A deputy of the State Duma in Russia has suggested creating a strategic reserve in BTC to strengthen the economic stability of the country.

Under the example of the USA pole, now the Kremlin could dedicate a part of its balance sheet to the accumulation of cryptocurrency.

In the meantime, Putin praises Bitcoin and launches a new favorable tax regime for crypto.

All the details below.

Russia ready to imitate the USA and build a reserve in BTC: the plan proposed to the Duma

The latest news takes us directly to Russia, where State Duma deputy Anton Tkachev has proposed to allocate a strategic reserve in BTC.

The member of the “Nuove Persone” party invited his colleagues to consider the plan as a form of protection against the exposure of other Western countries.

Allocating a portion of the Kremlin’s budget in Bitcoin could greatly increase the financial stability of Russia, compensating for the inefficiency of other assets.

According to what was established by the local media of Moscow, Tkachev has formally submitted this proposal to the Duma to the Minister of Finance Anton Siluanov.

The proposal focuses on the limits of traditional currency reserves, denominated in USD, euro, yuan, and rubles. At the same time, the deputy suggests that BTC could offset their inflation, also helping to overcome international sanzioni.

Here is what was written verbatim by the legislator of the Duma: 

“I ask you, dear Anton Germanovich, to assess the feasibility of creating a strategic reserve of Bitcoin in Russia by analogy with state reserves in traditional currencies. If this initiative is approved, I ask you to present it to the government of the Russian Federation for further implementation.”

Likely the Russian political orientation favorable to BTC was triggered by the victory in the United States elections of Donald Trump.

The Republican billionaire has indeed embraced a pro-crypto vision in which the orange currency acts as a cornerstone of the new American economy.

When formally inaugurated as President in January, he might announce the purchase of a national crypto reserve, confirming the promises made during the election campaign.

In Pennsylvania there is already talk of a bill proposing the allocation of 10% of state funds in BTC, as a means to diversify investments.

Putin recognizes cryptocurrencies as property within a tax-favored regime: law approved by the Duma

The proposal of BTC reserves to the State Duma in Russia aligns with the recent public approval of the cryptocurrency by President Vladimir Putin.

The oligarch reportedly praised Bitcoin just last week, stating that no one can ban it nor counter its rise.

In the framework of the economic forum “Russia Calling”, organized by VTB Bank, Putin also presented a new regulatory reform favorable to cryptocurrencies.

Announced at the end of November, the bill proposal recognizes digital currency for foreign commercial transactions under an experimental legal framework.

This type of asset officially becomes property, prompting a sentiment of support at a time of maximum market expansion.

The new law also imposes a new favorable tax regime, where mining and the sale of securities are exempt from value-added tax (VAT).

The Russian State Duma, the lower house of parliament, approved this reform on November 26, before moving to Putin’s desk.

The framework aims to regulate the cryptocurrency sector with a focus on transparency and responsibility of the organizations involved in the sale and distribution.

It is important to highlight how the new legislation still limits the tax options for entities involved in mining, which remain subject to standard income tax rates.

This classification still requires that mining expenses be deducted before determining the taxable income.

At this moment, the personal income tax for digital currency transactions is at 13% for incomes up to 2.4 million rubles and  at 15% for amounts exceeding that.

Starting from 2025, corporate profits from mining will be subject to a 25% tax.

The sanctions in case of non-compliance with the regulation reach up to 40,000 rubles (382.78 dollars).

Russia and BTC mining

Regarding mining, we remember that Russia had legalized the cryptographic activity of BTC extraction at the end of July 2024.

The president has canceled all previous restrictions, marking a strong regulatory shift from the last ban policy.

In any case, some limits remain active on certain regions, including Donetsk, Lugansk, Zaporizhia, and Kherson. Siberia also faces seasonal restrictions on mining between December 2023 and March 2031 to manage electricity demand.

The law approved by the Duma has introduced the possibility for anyone to leverage their computing power to mine BTC, starting from November 1, 2024.

Legal entities and individual entrepreneurs registered with the Ministry of Digital Development can also engage in this business.

The regulation simultaneously introduces the ban on advertising cryptocurrencies and offering them to an unlimited number of people.

Putin has also introduced a supervisory team, divided among various institutions including the Bank of Russia.

The latter will have the right to introduce a ban or restriction on transactions with digital currency to preserve the monetary stability of Russia.

In parallel, the economic entity of the country will be able to allow authorized companies to carry out cross-border transactions and digital currency exchanges.

Companies and corporations operating in crypto must necessarily contact the central institution to request entry into the experimental regime.