Rostov Court Rules Peer-to-Peer Crypto Transactions Taxable, Fines Trader

A Russian court has set a precedent by classifying peer-to-peer cryptocurrency transactions as taxable business activities. The Arbitration Court of Rostov Oblast fined trader Dmitry Nikityuk after tax authorities discovered $1.8 million in undeclared transactions flowing through his accounts.

Nikityuk, registered as an individual entrepreneur, had declared only $10,000 in income from his 2022 crypto trades. Tax inspectors argued his P2P transactions constituted commercial activity, slapping him with a $70,000 tax bill and additional penalties for inaccurate reporting.

The ruling casts uncertainty over Russia's gray-market crypto economy, where many citizens rely on P2P platforms amid restricted access to licensed exchanges. Market observers warn the decision could trigger wider tax enforcement against retail traders operating outside formal exchange ecosystems.