Russia proposes harsh penalties, include jail terms and fines for unreported crypto trader
Russia’s Ministry of Finance has drafted a bill with harsh penalties for anyone who does not report their cryptocurrency holdings above a certain level. Penalties include jail terms and fines, according to local newspaper Kommersant.
The bill contains amendments to the Russian Criminal Code, the Criminal Procedure Code, the Administrative Code, the Tax Code, and the law on combating money laundering.
Noting that the market views the previous draft law as posing significant restriction to the circulation of cryptocurrency in Russia, Kommersant reported that the new draft law is even more strict. “In particular, any person who has received digital currency or digital rights of more than 100,000 rubles ($1,280) in a calendar year is obliged to inform the tax authority and submit an annual report on transactions with such assets and the balances of these assets.”
For failure to report to the tax authority, you can get a fine of 30% of crypto assets, but not less than 50,000 rubles, Dmitry Kirillov a senior tax lawyer explained.
Roman Yankovsky, a member of the commission on legal support of the digital economy of the Russian Lawyers’ Association said.
The liability is not limited to fines. Non-declaration of a crypto wallet if more than 1 million rubles ($12,796) have passed through it per year becomes a criminal offense of up to three years in prison. Also, forced labor can be used as a punishment.
Russia’s Ministry of Justice has confirmed that the proposed bill is under consideration for adoption in connection with the law on digital financial assets and digital currencies which will enter into force on Jan. 1, 2021.
Read more:
- Russia’s Telecom Regulator Roskomnadzor Has Blacklisted Binance Exchange
- Russia’s Ministry Of Finance Proposed A Set Of Amendments To The Law On Digital Financial Assets Which Bans Many Operations With Crypto