Russia’s Ministry of Finance now wants to introduce criminal liability for undeclared crypto taxes. Non-compliance would lead to fines and three years in prison.
September 24, 2020 | AtoZ Markets – Russia’s Ministry of Finance (Minfin) has prepared a new draft bill on the regulation of cryptocurrencies which, if it comes into effect, would force residents to declare their crypto wallets—or face up to three years in prison, according to a Thursday’s report by Kommersant.
Russia intensifies hunt for crypto tax cheats
According to the proposal, any failure to report transactions above 1 million rubles (around $12,925) will attract a monetary penalty of up to 300,000 rubles ($3,877) or imprisonment of up to six months. For crypto transfers above 5 million rubles ($64,625), the jail time can be up to three years, along with a fine of 500 thousand rubles ($6,462).
Apart from individuals, the proposed legislation also want exchanges and other Russian organizations to report on their cryptocurrency transactions quarterly.
The ministry introduced another set of proposed legislation on crypto earlier this year. The law seeks to restrict the circulations of cryptocurrencies in the country. Along with similar fines, those bills proposed prison time of up to seven years, depending on the amount involved.
Per the report, the ministry has sent the updated documents to many other departments. This includes the Ministry of Digital Industry, the Ministry of Internal Affairs, the Federal Tax Service, the Prosecutor General’s Office, and the Central Bank.
Russia bans crypto payments
Meanwhile, the Russian government recently enforced new crypto regulations in the country. The new law allows Russians to trade cryptocurrencies. However, it does not permit them to price goods and services in Russia in cryptos. If someone wants to buy something with Bitcoin, then he has to sell it for rubles first. President Vladimir Putin already signed this law that will come into effect at the start of 2021.
Moreover, in August, AtoZ Markets also reported that Russia has also banned cash deposits to all anonymous wallets, including Yandex.Money, QIWI-Wallet WebMoney, PayPal, VK Pay, and a few more, as its push to curb illegal financial activities.