Russian President Vladimir Putin has signed a new law that officially recognizes digital currencies as a form of property in foreign trade settlements under an experimental legal regime (ELR).

Under the regulations, crypto mining and sales are not subject to value-added tax (VAT). Crypto transactions facilitated within the ELR are also tax-free, the report noted.

Yet, mining facility operators are required to report to the tax authorities who use their services. Those who fail to submit the information on time face a fine of 40,000 rubles.