Russia Considers Federal Tax Service as Entry Point for Cryptocurrency Market Participants
In an interview with Izvestia at the St. Petersburg International Legal Forum, Alexey Moiseev, the Deputy Minister of Finance of Russia, spoke about the future of the regulatory agency for the cryptocurrency industry in Russia.
Moiseev suggested that the Federal Tax Service will likely become the regulator of the cryptocurrency industry and serve as an entry point for market participants. The Federal Financial Supervisory Service and the Central Bank will also have a role to play, but the interface for regular people involved in cryptocurrencies will be the Federal Tax Service.
Moiseev explained that the regulatory agency will accept declarations from people about their cryptocurrency wallets and transactions, just as the Federal Tax Service does for foreign accounts. All transactions must be declared, and taxes must be paid since income arises. Information about the wallet and transactions will be shared with the Federal Tax Service, Rosfinmonitoring, and the Central Bank. The goal is to prevent money laundering and other illegal activities.
The cryptocurrency market has been a hot topic of discussion at the SPBILF, and many parameters have been clarified. The government is currently considering a bill that will appoint an agency to regulate the cryptocurrency industry. Moiseev’s comments shed some light on what this regulatory agency might look like in practice.
In addition to discussing cryptocurrency regulation, Moiseev also spoke about the conditions under which the co-financing period under the new long-term savings program can be extended and how the marketplace will work. He also addressed restrictions on foreign companies from unfriendly countries that leave and want to sell assets to residents, saying that limits on the purchase of currency exist, and they change depending on the current situation.
The cryptocurrency industry in Russia is still in its early stages, and there is much debate about how to regulate it. However, Moiseev’s comments suggest that the government is taking a proactive approach to ensure that the industry is regulated properly to prevent illegal activities while still allowing market participants to participate. It remains to be seen how this regulatory agency will function in practice, but it is clear that the government is taking the issue seriously.
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