Russian ministry offers legal responsibility for failure to report crypto tax

To ban crypto or to tax, that seems to be the question.

Russian Ministry of Finance  keeps pushing regulations for the cryptocurrency industry by offering new tax requirements.

New requirement supposes the introduction of criminal liability for failure to declare taxes on crypto, including imprisonement of up to three years.

Based on  Kommersant report, the ministry proposes that individuals who do not report an amount exceeding 1 million Russian rubles ($13,000) in annual crypto operations should serve a imprisonment term or do public works.

The ministry also offered principal fines for smaller unreported amounts. This means that any physical or legal entity in Russia would have to report their annual crypto income if the amount is greater than 100,000 rubles ($1,300).

Moreover Russian financial authorities offer that local cryptocurrency exchange services to reported to tax authorities on all the transactions on a quarterly basis.

Kommersant experts think that the new proposals concern both Russia’s new crypto law “On Digital Assets” and the upcoming bill “On Digital Currency.” In the current version of the law “On Digital Assets,” Russian lawmakers do not give info on taxation rates and the order of crypto taxation.

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