Russian crypto investors will face up to three years in jail if they do not report their wallet balances to tax authorities
Cryptocurrency investors in Russia could face up to three years in jail for failing to disclose their wallet details. They will also be required to pay heavy fines as part of the punishment for violating the new law proposed by the country's Ministry of Finance.
Russia's Proposed New Crypto Tax Requirements Explained
Russia's Finance Ministry has outlined a new plan to tax cryptocurrency holders in the country.
According to the local post, Kommersant, the new proposed bill will require investors to report their addresses and cryptocurrency balances to tax authorities. In particular, individuals or entities that receive more than 100,000 Russian rubles (equivalent to $ 1,300 USD) in a year for cryptocurrency operations must submit a report.
If not reported, violators would be fined 30% of the total amount received, but not less than 50,000 rubles ($ 650). Kommersant notes that people who do not report cryptocurrency income of more than 1 million rubles ($ 13,000) will face a jail term of up to three years.
The Finance Ministry has already sent the bill to various ministries in the country. It will be discussed at a meeting that will take place this week. That said, if this bill passes, investors will also need to report their cryptocurrency income for 2020.
Russia has been seeking stricter measures regarding the use of cryptocurrencies in the country. As 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 hit the crypto industry. However, it is unlikely that it will kill him forever.