Russia’s Ministry of Finance (Minfin) has prepared a new draft bill to regulate cryptocurrencies. When it becomes effective, it will force the residents to declare their crypto wallets or face three years in prison. As the proposal states, any individual or legal entity with more than 100,000 rubles (around $1300) worth of crypto per year should be obliged to notify the tax authorities and submit a consistent report. In the case of non-compliance, the violators will face a fine amounting to 30% of the amount that has been received – but no less than 50,000 rubles ($650).
If over one million rubles ($13,000) in crypto shall “pass through” an undeclared crypto wallet for a year, the owner could face up to three years of prison time or a community sentence, as proposed in the document.
According to the local lawyers, if the amendments are approved, they will come into force retroactively, so the Russian crypto holders will also have to involve their 2020 transactions in the reports.
It has been noted that the criminal part of the amendments is a little extensive. “The use of cryptocurrencies while committing a crime,” for instance, is proposed to be recognized as an annoying condition. But the bill is not even incomplete to the territory of Russia.
The foreign entities are also proposed to be obliged to send quarterly reports about Russian cryptocurrency transactions to the tax authorities, as submitted by Minfin. On the other hand, “hardly anyone will take this seriously,” debated Roman Yankovsky, a member of the Russian Lawyers Association’s commission on the digital economy legal support.
A meeting held to discuss the new amendments is scheduled to take place this week as Minfin has already sent out the draft bill to several ministries, the outlet added. Judging by the former statements, the Ministry of Economy could’ve been among the ones who are calling for softening the amendments, but they didn’t receive the invitation.
As it was being reported, after approving a somewhat “milder” version of the crypto law, the Russian authorities have kept coming up with progressively stricter amendments to it. Recently, Minfin has submitted a new bill that would make it illegal for minors to receive rewards in the cryptocurrency like Bitcoin or Ethereum.