Russian lawmakers approved a draft of a law that could potentially exempt digital asset issuers and cryptocurrencies from value-added tax on Tuesday, according to a Reuters report. 

The move should come as a surprise to many, given that the Russian government has previously voiced its scepticism about digital currencies and assets. The Central Bank of the Russian Federation has long said that financial stability is the primary issue when it comes to crypto.

In February this year, the central bank gave Atomyze Russia, a blockchain platform, the very first licence for exchanging digital assets. Soon after, the country’s primary lender Sberbank got theirs. 

State Duma, the lower house of the Russian government, approved the draft law after its third reading on Tuesday. The law proposes exemptions on value-added tax for companies and information system operators that issue digital assets. Simultaneously, the law proposes a tax rate on income earned from the sale of digital assets.

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Currently,  the proposed rate is the same as for standard assets, sitting at 20%. However, with the new law, the rate would change. Russian companies would have a rate of 13% while foreign companies would have 15%. The draft law, must be cleared by the upper house, before being passed on to President Vladimir Putin for his signature, before it can become law. 

The country has been hit by severe Western sanctions since its invasion of Ukraine, which have affected many aspects of the country’s economy. Most notably, the financial and banking systems have taken a hit, especially after SWIFT, the banking system that allows the rapid transfer of money across borders, banned several of the country’s banks from its ecosystem. 

Russia had expected to plough through Ukraine in a few weeks, but has instead been bogged down by determined Ukrainian soldiers and guerillas. The breadbasket of Europe has received considerable support from Western countries and has been offered a fast track membership into the North Atlantic Treaty Organization.