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Russia Planning To Tighten Cryptocurrency Regulation With Revised Tax Rules

Crypto industry specialists in Russia have advised that government agencies are preparing for a regulatory approach that will see it “tighten control” over crypto, imposing tough new tax protocols and improving its monitoring of transactions.

Through media outlet RIA Novosti, industry specialists have cited that Moscow wants to require all traders to submit annual tax declarations detailing their transactions with cryptoassets.

The State Duma is confident to vote on a bill that will force individuals or companies working with “digital assets” to pay corporate income tax or personal income tax on their earnings and submit details of their transactions if these are worth over USD 8,000 over a tax year.

The experts told the media outlet that the tax authorities will seek to police tax declarations using data gathered from crypto exchanges.

The Central Bank, stated legal experts and executives from the Garantex and Alfacash exchanges, is preparing to impose trading platforms to submit data on their clients’ transactions, and tax authorities will have access to these.

The experts also added that the government plans to step up its monitoring of transactions conducted by Russian citizens and residents on overseas trading platforms.

The authorities appear convinced that they now have the tools at their disposal to track crypto-to-fiat transactions using bank-submitted data, and now feel they are ready to start building networks that will help them track crypto-to-crypto trades.

Alfacash legal head and director Nikita Soshnikov said that he foresaw a “general trend of tightening control over crypto transactions,” starting with crackdowns on government officials with crypto holdings.

The experts continued saying that crypto taxation policing would likely kick off in earnest in the coming financial year – with citizens and companies dealing with crypto expected to declare their earnings at the end of the FY2021 tax year (April 2022).

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