Valdimir Putin has officially announced Russia’s own blockchain based cryptocurrency, the CryptoRuble. This virtual currency will be a legal tender in Russian Federation, supply of which will be regulated and maintained by state authorities. CryptoRuble will be a state-controlled cryptocurrency which cannot be mined by miners. Cryptocurrency owners unable to declare the source of origin will incur 13% personal income tax while converting Cryptoruble to Russian rubles. Similarly, 13% tax is also levied on profits earned through buying and selling of this cryptocurrency.
Cryptoruble will be treated as conventional money with more regulations. One can easily exchange this digital currency equivalent amount of physical currency. State enforced taxation laws will discourage corruption and money laundering instances across the country.
Russia plans to impose stringent measures to regulate the cryptocurrencies to exercise full control and autonomy. The creation of own cryptocurrency does not endorse any legal status to other cryptocurrencies such as bitcoin in the country. Launch of this digital currency is an effort by Russian regulators to diversify its economy away from oil.