Russian Officials do not need to report cryptocurrency profits

Thanks to the amendment to one of the points by the Russian Labor Ministry, Russian Officials do not need to report cryptocurrency profits. Why did the authorities take this decision?

11 January, AtoZForex The Ministry of Labor in Russia has updated its income, expenses and property declaration guidelines in regards to the government employees. The new update comes with a point about cryptocurrency, according to the local media reports.

Russian Officials do not need to report cryptocurrency profits

More specifically, the Russian government decided to allow government employees not to declare “virtual currencies” they obtained. The note about digital currencies has been added to the already existing point that outlined that government employees were not obliged to declare “goods and services in their natural forms.” Now, the new update also states: “as well as virtual currencies.”

Reportedly, the officials from the Ministry of Labor in Russia have stated that they do not currently require cryptocurrency to be declared. This is due to the fact that Russia’s lack of legislation in the space. The local news sources cited the authorities saying:

“At present, approaches to the definition and regulation of cryptocurrencies in the Russian Federation at the legislative level are not defined.”

Crypto Bribes?

Russian officials have been obliged to make public declarations about their income since 2009. Some industry insiders have reported that the ruling has increased the risk of receiving bribes in cryptocurrency that would be undisclosed.

Yet, the same local sources quote Vladislav Tsepkov of the “Business Against Corruption” Center, stating that they saw the risk of government workers taking bribes in crypto as “minimal:”

 “But cryptocurrency is not a means of payment, it cannot be spent. If they sell it and get real income, then it will need to be declared, so the risks are minimal.”

Following on this, the media has mentioned that according to the same regulations, government employees are required to declare gifts of fiat money from friends or family. These amendments emerge at a time when corruption levels in Russia are at all-time high, according to the statistics available online.

Russia is yet to create a law that clearly covers digital currencies. The nation’s officials and central bank have an overall negative stance in regards to cryptocurrency market.

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