The country of Russia has actually followed the footsteps of the most populous country in the world, China. How you may ask? Well, like China, the country of Russia has also imposed several acute bans on cryptocurrency.
It is still a shock of different countries of the world as well as the cryptocurrency community that there are still some countries that aren’t in complete support of crypto mining and development.
This might be due to the volatility of the crypto world that causes these countries as well as their governments to mistrust the entire thing. Well, in recent news, Russia has made an analysis that it could actually manage to collect around $13B in the collections of taxes from the recent cryptocurrency bans that are imposed on the public.
The note that was provided by the government to a certain publication actually made a pretty astounding estimation about the collection of Russia from the tax sector, according to crypto ban news today. There was a particular overview that was mentioned on the different tax slab that was imposed on the country which amounted to be about 6% in total.
The different regulations that were imposed on the country would amount to a certain kind of money for sure. Well, the government of Russia would be collecting about 1 trillion rubles in total, and in the present times, it would go up to about $13B. This estimation was made by authorities of the country so there is no genuine cause to not trust the news.
The Bell, which is a pretty local Russian publication, has made a report that it got its hands on the note from the government analytic sections that would make the estimation for the revenue that would be generated from the yearly collections of tax.
Going by the author of the letter, Russians hold 12% or nearly $214 billion in crypto. The number of users on foreign exchanges is estimated to be about 10 million, along with a significant number of over-the-counter (OTC) crypto trades. The government agency believes even the most straightforward tax imposition can generate anywhere from 146 billion to 1 trillion rubles in crypto tax revenue.
The note suggests two possible taxation methods: one for the crypto platforms such as exchanges, intermediaries, and OTC desks, another tax for investments and income from crypto. According to the estimates by the analytical group, the state could see revenue of 90 to 180 billion rubles ($2.4 billion) a year from crypto platforms with base taxation of 6% and generate another 606 billion rubles ($8 billion) in revenue by taxing crypto investments and income.
Assuming that a basic tax of 6% is standing at the moment, the total market of crypto of $200 billion would produce a projected $12 billion in the total revenue without having the involvement of the industry of mining. It is also essential to make a note that Russians now possess about 1% of the crypto wealth compared to the crypto holdings of the world which is about 12%.
The government report also notes the highly scattered and unregulated crypto mining industry, most of which is unaccounted for. The note reportedly said that the estimation is based purely on the simple tax bracket, and the original taxation could look very different based on the actual size of the market.
Russia is definitely moving forward with the plan that it has to control the huge market of cryptocurrency after the suggestion made by the central bank for a proper blanket ban to be imposed on the mining of crypto in the first place. However, the blanket ban proposal has been declined.
As Cointelegraph made the report earlier, the Russian Finance Ministry has already made a submission for the new framework for cryptocurrency, and hence there will be new regulations on the way.