Stars: Taxes and Legality in Different Countries

Legal Status of Telegram Stars

Telegram Stars (XTR) are Telegram's internal currency, tied to the TON (GRAM) blockchain. Legally, Stars occupy a gray area in most countries. They are not official currency, nor are they always classified as cryptocurrency in the strict sense.

It is important to understand: Stars are a utility token designed for use within the Telegram ecosystem. However, when exchanged for USDT or fiat, Stars begin to be treated as digital property or a financial asset.

Russia: Cryptocurrency Legislation

In Russia, cryptocurrency is regulated by the Law "On Digital Financial Assets" (No. 259-FZ of July 31, 2020), which defines cryptocurrency as digital rights.

What is legal:

• Owning cryptocurrency — fully legal
• Exchanging cryptocurrency for fiat — legal (with declaration)
• Crypto exchanges — may operate in Russia upon registration with the Central Bank
• Mining — legal, but requires registration

What is NOT legal:

• Paying for goods and services with cryptocurrency — prohibited (Article 11 of the law)
• Emission of cryptocurrency — prohibited (only CFA emission is permitted)

Cryptocurrency taxes in Russia:

• 13% personal income tax for residents (up to 5 million rubles of annual income)
• 15% personal income tax for income exceeding 5 million rubles
• 3-NDFL declaration — must be filed by April 30 of the year following the sale
• Exemption: holding for more than 3 years exempts you from tax (since 2021)

For Stars: if you exchange Stars for USDT and then withdraw to a card — this is a sale of digital rights. Income from the sale is subject to declaration and taxation. In practice, however, there is no mass control over small amounts.

Practical advice for Russia:

If you exchange Stars for amounts up to 60,000 rubles per year — the risk of attracting the Federal Tax Service's attention is minimal. For larger amounts, it is recommended to file a 3-NDFL declaration and pay 13% personal income tax.

Kazakhstan: First Country with Full Regulation

Kazakhstan is the first country in the world to adopt comprehensive cryptocurrency regulation (2022–2023). Cryptocurrency is recognized as a virtual asset.

Key provisions:

• Owning cryptocurrency — legal
• Exchanging — legal through licensed crypto exchanges
• Paying with cryptocurrency — prohibited for goods and services
• Tax: 10% on income from the sale of virtual assets
• Crypto exchanges must obtain a license from the National Bank of Kazakhstan

For Stars: Stars are treated as a virtual asset. Exchanging for USDT and withdrawing to a card is legal provided a 10% tax on income is paid.

European Union: MiCA

Since December 2024, the EU has had MiCA (Markets in Crypto-Assets Regulation) — a unified regulatory framework for cryptocurrencies across all 27 EU member states.

What MiCA regulates:

• Emission of crypto assets — requires a license
• Crypto exchanges and wallets — require registration with the national regulator
• Information disclosure — issuers must publish a whitepaper
• Consumer protection — restrictions on margin trading for retail investors

Taxes by EU country:

• Germany: tax exemption after holding for more than 1 year. If sold earlier — capital gains tax (19–27% depending on income)
• France: flat tax of 30% on crypto income (19% personal income tax + 11% social contributions). Alternative: inclusion in total income with a progressive scale
• Spain: 19–28% on capital gains (progressive scale)
• Netherlands: cryptocurrency is taxed as wealth tax, not capital gains
• Poland: 19% personal income tax on income from sale. Exemption after holding for more than 5 years

For Stars: in the EU, Stars are treated as a crypto asset. Exchanging for USDT and subsequent withdrawal is taxed according to the national legislation of the country of residence.

United States: The Strictest Regulation

In the US, cryptocurrency is regulated by multiple agencies simultaneously: the IRS (taxes), the SEC (securities), and the CFTC (commodities).

IRS taxes on cryptocurrency:

• Cryptocurrency = property, not currency
• Every exchange transaction is a taxable event
• Short-term capital gains: 10–37% (depends on income), if held for less than 1 year
• Long-term capital gains: 0–20%, if held for more than 1 year
• Reporting: Form 8949 + Schedule D

SEC and Stars:

The SEC may classify Stars as a security if it determines they meet the Howey Test. As of 2026, the SEC has not made specific decisions regarding Stars, but the general trend is tightening regulation of crypto tokens.

Practical advice: if you are a US tax resident, consult a tax attorney specializing in cryptocurrency. Penalties for failing to file a crypto transaction declaration can reach $10,000 per Form 8949.

UAE: Crypto Hub of the Middle East

The UAE (especially Dubai) is actively developing the crypto industry. VARA (Virtual Assets Regulatory Authority) is Dubai's virtual assets regulator.

Key provisions:

• Owning cryptocurrency — legal
• Business with cryptocurrency — requires a VARA license
• Income tax: 0% for individuals, 9% corporate tax (since 2023)
• Capital gains tax: no special tax on crypto gains

For Stars: the UAE is one of the most crypto-friendly jurisdictions. Exchanging Stars for USDT and withdrawing is legal; a 9% corporate tax may apply to business income.

Other Countries: Brief Overview

Ukraine

• Cryptocurrency legalized (2021 law)
• Tax: 18% personal income tax + 1.5% military levy on income from sale
• Exchange through licensed crypto exchanges

Georgia

• Cryptocurrency is legal, no special regulation
• Tax: 5% on capital gains from cryptocurrency (one of the lowest rates in the world)
• Georgia is a popular jurisdiction for crypto business

Turkey

• Exchanging and owning cryptocurrency — legal
• Paying with cryptocurrency — prohibited
• Tax: 15% on capital gains from cryptocurrency
• Turkey's Central Bank requires a license for crypto exchanges

Brazil

• Cryptocurrency regulated by the Central Bank of Brazil
• Tax: 15% on capital gains (on sales exceeding R$35,000 per month)
• Up to R$35,000 — tax exemption

Stars as a Business: Tax Implications

If you use Stars in the context of business activity (for example, creating Mini Apps and earning Stars from users), the tax implications are significantly more complex:

For Mini App developers:

• Income in Stars is considered business income
• Exchanging Stars for USDT — realization of income
• Tax: depends on the business form (sole proprietorship, LLC, self-employment)
• Russia (self-employment): 4–6% tax, simplified reporting via the "My Tax" app
• Russia (sole proprietorship, simplified tax): 6% of revenue or 15% of profit

For Telegram channel owners:

• Monetization through Stars (subscriptions, donations) — business income
• In Russia, bloggers with income from monetization must register as a sole proprietor or self-employed
• Stars from donations — taxable income subject to declaration

How to Legalize Income from Stars

Option 1: Self-Employment (Russia)

The simplest way to legalize small income:

• Registration via the "My Tax" app — 5 minutes
• Tax: 4% when working with individuals, 6% with legal entities
• Limit: up to 2.4 million rubles per year
• Weekly reports via the app

Option 2: Sole Proprietorship (Russia)

For more serious business:

• Simplified Tax "Revenue" — 6% of turnover
• Simplified Tax "Revenue minus expenses" — 15% of profit
• Ability to deduct expenses (equipment, advertising, rent)

Option 3: Offshore Company

For large volumes:

• Register a company in a low-tax jurisdiction (UAE, Georgia, Cyprus)
• Stars → USDT → transfer to the company account
• Corporate tax: 0–9% depending on the jurisdiction

Important: an offshore scheme requires tax residency in that jurisdiction. Russia applies the CFC (Controlled Foreign Company) rule — profits of foreign companies controlled by Russian residents may be taxed in Russia.

Practical Recommendations

• Small amounts (up to 60,000 rubles/year): risk is minimal, but formally — a 3-NDFL declaration
• Medium amounts: consider self-employment (4–6% tax, simple reporting)
• Large amounts / business: sole proprietorship or a company in a friendly jurisdiction
• Always keep transaction history (exchange screenshots, wallet statements)
• Consult a tax specialist in your country

Conclusion

Telegram Stars occupy different legal positions depending on the country. In most CIS and European countries, Stars are treated as digital property or a virtual asset. Income from exchanging Stars for fiat is taxable.

For most users with small amounts, the risk is minimal. For business and large volumes — legalization through self-employment, sole proprietorship, or a company in a friendly jurisdiction is recommended.

To exchange Stars for USDT, use trusted services: Flash Swap (@flash_swap_bot) — automatic exchange, minimum threshold from 5 ⭐.