Cryptocurrency investors convicted in Russia for failing to declare their wallet details could face up to three years in jail, we can reveal today. They will also be liable to pay hefty fines as part of the punishment for breaching the new law proposed by the country’s finance ministry.
Russia’s New Proposed Crypto Tax Requirements, Explained
Russia’s Ministry of Finance has outlined a new plan to tax cryptocurrency holders in the country.
According to the local publication, Kommersant, the new proposed bill will require investors to report their crypto wallet addresses and balances to tax authorities. In particular, individuals or entities who receive over 100,000 Russian rubles (equivalent to $1,300) in a year from crypto operations should submit a report.
Failure to report would earn the violators a fine of 30% of the total amount received, but no less than 50,000 rubles ($650). Kommersant notes that individuals who fail to report crypto income of over 1 million rubles ($13,000) will face a jail term of up to three years.
The ministry of finance has already sent the bill to several ministries in the country. It will be discussed in a meeting set to take place this week. That being said, if this bill is passed, investors will also have to report their crypto income for 2020.
Russia has been seeking stricter measures regarding crypto use in the country. As ZyCrypto reported earlier this month, the finance ministry proposed a bill that would prohibit miners from receiving rewards in bitcoin or ethereum after they have verified transactions.
Needless to say, Russia will continue to deliver blows to the cryptocurrency industry. However, it is unlikely to kill it for good.