By Dr. Leandro Pinto
The air in Moscow was heavy, thick with the weight of history and the scent of change. On November, 2024, the Kremlin’s iron doors swung open to let loose a law that dared to challenge the tide of global sanctions. It wasn’t a shot fired or a speech given, but a signature on paper—a law recognizing cryptocurrency as property, reshaping the rules of miners and markets, and whispering defiance to a world eager to constrain Russia’s hands.
Dostoevsky wrote, “The soul is healed by being with children.” But what about nations? Nations, I think, are healed by being with ideas. And here was an idea, raw and untamed: a market decentralized, alive, and pulsing in the ether. A market without borders, a market Russia could shape to its own needs. Not to heal, perhaps, but to endure.
The Bones of the Law
The law is simple, but its consequences are not. It speaks in terms of deductions, percentages, and obligations, yet its essence is something far greater. It is a map, and on it are pathways to sovereignty in a world of interdependence.
Tax Freedoms and Tightened Reins
The law spares crypto sales and mining from VAT, giving miners and traders room to breathe. It’s a deliberate gift—a way to say, “Come here, invest here, grow here.” But the gift comes with a price. Income earned from mining, whether by individuals or companies, will be taxed. Miners are no longer outlaws; they are citizens of the state, expected to contribute to its coffers.
For individuals, the tax is a sliding scale: 13% on earnings up to 2.4 million rubles, 15% beyond that. For corporations, it’s 25%. A fair price to pay, some might say. But fairness is relative. What matters is the control, the power to bring even the most decentralized of markets under the state’s shadow.
The Miner’s Burden
Miners have their expenses, of course—electricity, hardware, the relentless churn of machines solving equations faster than the eye can blink. These costs will be deductible, a nod to the realities of the trade. Yet there’s no escape from the records they must keep, the data they must share with tax authorities. The penalties for silence are steep—40,000 rubles or more. Transparency, in this market, is not a choice but a demand.
A Market for Survival
The law’s purpose is plain. It’s not just about regulating the unregulated; it’s about survival. In a world where sanctions bite deep and hard, Russia seeks a way out, a way forward. Cryptocurrency offers that path. A decentralized market cannot be sanctioned, cannot be seized. It is freedom in its purest form, but also chaos. And Russia, for all its daring, seeks to tame it.
The Hemingway Way
The miners, they work in the glow of their rigs, the hum of fans their only company. The traders, they sit behind screens, watching the numbers climb and fall. And above them all, the Kremlin, watching, guiding, taking its share. This is not a free market; it is a Russian market, shaped by Russian hands, born of necessity and ambition.
There is no romance in this law, no illusion of altruism. It is pragmatic, sharp-edged, and unyielding. But in its pragmatism lies its strength. Russia is not building for today; it is building for tomorrow, for a world where power is no longer measured in barrels of oil or columns of soldiers, but in digital ledgers and the promise of decentralization.
The Fight for Freedom
Dostoevsky might have called it madness, this pursuit of freedom through control. But he also understood the depths of the human spirit, the drive to survive, to adapt, to defy. Russia, in its own way, is doing just that. This law is not the end of the story. It is the beginning—a new chapter in a book that will be written not with ink, but with code.
About the Author:
Dr. Leandro Pinto is a senior attorney at Dr. Leandro Pinto Law Firm, specializing in international law with an emphasis on banking and energy regulations. His extensive background in banking law, combined with his mastery of cryptographic algorithms, positions him as one of the foremost experts in global financial negotiations. Dr. Leandro is the creator of the Encrypted Infinite Point Algorithm (EIPA), a revolutionary methodology for constructing tokens and other cryptography-based technologies. His work with advanced algorithms has enabled the optimization of financial systems and smart contracts, providing innovative solutions for the energy and technology sectors.
His vast experience in the international financial and legal markets gives him a unique perspective on the geopolitical and economic implications of innovations in the energy sector. With a proven track record of success in international transactions, his expertise ensures that clients are always at the forefront of global operations. For more information, visit www.leandropinto.us.
29 /11/2024