Russia Proposes a 3-Year Jail Term to Individuals Who Fail to Declare Crypto Holdings to the Tax Authority

Russia Proposes a 3-Year Jail Term to Individuals Who Fail to Declare Crypto Holdings to the Tax Authority

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Russia’s finance docket has recommended a bill that would compel the owners of digital currencies to declare their holdings to tax authorities. Failure to which they will face a jail term of three years. According to the bill, any enterprise or individual that deals in the digital currency and has received 100,000 rubles ($1300) within one year, will be required to declare their holding to tax authorities. If the enterprise or individuals contravene the bill, they would be compelled to pay a fine of 30% of the amount they accumulated in their undeclared digital currencies.

Also, when enterprises or individuals accumulate cryptocurrency worth 1 million rubles ($13000). They must declare such holding to authorities or will face a 3-year jail term.

According to some local lawyers in Russia, if the amendment goes through, its implementation will be retroactive. Therefore, Russians crypto holders will be forced to incorporate their 2020 transactions into this year’s financial report.

Kommersant a Russian political newspaper holds that the illicit part of the bill is quite weird. This implies that foreign entities such as depositors, exchanges, and other organizations would also be required to submit their quartile report about Russian’s cryptocurrency to Russians tax authorities. This may not be possible since many organizations outside Russian’s boundaries may fail to comply with the proposed bill. Roman Yankovsky (a member of the Russians Lawyer Associations Commission) argued.

Russian authorities plan to stop Bitcoin Miners from earning from Bitcoin.

Russian’s Minfin has sent the draft bill to different ministries and the meeting to brainstorm on the new amendments planned to take effect this week. In light of the previous statement, the ministry of Economy that seemed to be against the amendments was not among the ministries that received the invitation.

According to Decrypt after partial approval of the crypto law, the government keeps on boosting the cruel amendment to the law. In the recent past, the Minfin proposed a new bill prohibiting miners from benefiting from rewards in cryptocurrencies including Ethereum and bitcoins. While the Russian government can’t stop the bitcoin completely, they seem to work hard in gradual eradication of digital currency through compromising legislation bills.

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