Russia is making progress with tax cryptography legislation after the country's parliament passed the corresponding bill at first reading.

The bill has been in progress for several years and presents amendments to the current federal tax code. It recognizes cryptocurrencies like Bitcoin as property while criminalizing the non-declaration of profits from crypto trading. This includes foreign residents and citizens of the country, as well as local and international organizations established in Russia.

The new legislation requires reporting transactions when their total value exceeds 600,000 rubles ($ 8,130) annually. This value must be calculated based on the market price of the cryptocurrency.

Late reports or false information are subject to a penalty of 10% of the highest total value of a set of transactions - incoming or outgoing.

The upside for long-term Bitcoin holders is that just having cryptocurrencies is a non-tax event - as long as they don't transact. The exact mechanism for monitoring transactions is also unclear.