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An unofficial translation of the letter from the Federal Tax Service of Russia “On the measures regarding the exercise of control over the circulation of cryptocurrencies”

An unofficial translation of the letter from the Federal Tax Service of Russia “On the measures regarding the exercise of control over the circulation of cryptocurrencies”


The Association presents an unofficial English translation of the letter from the Federal Tax Service of Russia “On the measures regarding the exercise of control over the circulation of cryptocurrencies”.

In October 2016 the Federal Tax Service of Russia issued the letter No. ОА-18-17/1027 “On the measures regarding the exercise of control over the circulation of cryptocurrencies” (the Letter).

It is the first official position of the executive bodies on the matter in Russia. Russian Federal Tax Service stipulates that Russian legislation does not prohibit using cryptocurrencies within the country, as it does not define such terms as “monetary surrogate”, “cryptocurrency” and “virtual currency”. However, purchase and sale of cryptocurrencies could be qualified as foreign currency exchange transactions.

Federal Tax Service of Russia addresses its letters to all lower-level fiscal authorities. They in turn tend to align their operations with the official position of the Federal Tax Service. Therefore, the Letter may influence the circulations of cryptocurrencies in Russia greatly by setting the regulatory framework – an approach that has been used in many other countries.

Per the wording of the letter, the prohibitive stance of the Russian authorities gave way to a more weighted and analytical approach.

You can read the full version of the translation Federal Tax Service Letter by following the link. Original text is available here.

Please, note that the translation is unofficial and was not coordinated or in any way approved by the Federal Tax Service. Translation is provided for information purposes only.