by Usman Salis
The Ministry of Finance in Russia again drew attention to the regulation of the cryptocurrency industry. Users will be required to declare their crypto assets
Russia has taken a different turn – with the Ministry of Finance considering take some measures to achieve agreement in terms to crypto-assets regulations.
Kommersant reported that the ministry could prosecute undeclared possession of crypt with fines according to new regulations introduced by the ministry.
In order to address new iterations of the bill “to be introduced in relation to” the first-ever crypto law of Russia, which entails entry into force on January 1, 2021, the Department of Finance will meet with stakeholders and decision-makers this week.
The terms of the notification of the tax authorities:
- Availability of more than 100 thousand rubles
- Turnover for the wallet of over 1 million rubles per year
But the new plans, which Kommersant said he saw versions of, seem to enforce what looks like punitive sanctions on the holders of cryptography that do not let the state know how the world of cryptography is doing.
The media announced that the regulations mandate tax authorities to be aware of all entities who have earned more than 1,300 USD in a calendar year. An annual record of your transaction history and the balance of your crypto assets will be needed for crypto owners.
If this is achieved, a minimum fine of approximately 650 USD – or up to 30% of the total crypto asset holdings of a person – would be levied.
However, the liability is not restricted to fines. If more than 1 million rubles a year is transferred into it, the failure to disclose a cryptographic wallet is considered to be a criminal activity and could lead to up to three years in prison.