Boris Titov, a Russian politician and Presidential Commissioner for Entrepreneurs’ Rights, has asked the Chairman of the Russian Central Bank to follow the Japanese model in regulating digital currencies like bitcoin and ethereum according to a copy of the letter obtained by Vedomosti, Russia’s version of Financial Times.
According to a rough translation, Titov said Japan has regulated exchanges, requiring the usual AML/KYC, has allowed free trade of digital currencies and, crucially, has removed VAT on digital currencies like bitcoin and ethereum.
That’s a model the Central Bank should follow, Titov said at a time when the Russian Ministry of Finance and the Central Bank are discussing the future of digital currencies.
The Deputy Finance Minister, Alexei Moiseev, said in early June that digital currencies regulations will be similar to that of derivatives.
While the Chairman of the Duma Committee on Financial Markets, Anatoly Aksakov, suggested digital currencies should be considered as a financial instrument on par with securities and derivatives which are not subject to VAT, so should not be taxed, according to Vedomosti.Russia’s state duma/parliament
Russia currently has no legislation on digital currencies, with the current debate being on terminology and their classification.
Meanwhile, Japan has gone further than any nation in declaring bitcoin and other digital currencies as legal tender, an historic first, while at the same time removing taxation.
Britain has sort of taken the same approach all the way back in 2014, but without explicitly classifying digital currencies as legal tender. However, they are not subject to VAT when used as a currency.
America and Australia are both heavily criticized for double taxation of digital currencies, stifling growth while making the business environment somewhat unfriendly.
It is probably because of their approach and to offer a jurisdictiona...