Russia’s Ministry of Finance has developed a new crypto amendment to the country’s current regulation on cryptocurrency. The proposed law outlines new rules for cryptocurrency owners, miners, and cryptocurrency exchanges. The amendment even includes penalties for undeclared cryptocurrency transactions. The proposed amendment is scheduled to go into effect in January.
Russia Proposes New Crypto Amendments
The proposed amendment highlights that both individuals as well as owners need to report on their cryptocurrency transactions and details on their wallet balance to the tax authority if the amount exceeds 600,000 rubles ($7,757) yearly transactions. The first reporting deadline is scheduled for April 30, 2022.
The new amendment shows a significant increase compared to a previous proposal of 100,000 yearly rubles transactions for reporting the tax authorities last September.
The regulation stresses that crypto miners and exchanges in the country need to report their transaction details to Rosfinmonitoring, the Federal Financial Monitoring Service.
The Russian ministry has stressed that such kinds of regulations are necessary so that cryptocurrencies won’t be used only for illegal actions. The ministry’s press service highlighted:
“The use of digital currencies is increasing every year. Often this happens not only for investment purposes but also for money laundering,”
Punishments on Failing to Report Crypto Transactions
Those who fail to disclose their data to tax authorities twice in three years or knowingly provide false data will be liable for a criminal offense.
For those taxpayers with crypto transactions worth 45 million rubles or more in two of the past three years, the proposed punishments include a fine ranging from 500,000 rubles to 2 million rubles.
Punishments on false or unreported crypto transaction reporting include imprisonment for a period between 18 months and three years including forced labor.
In July, President of Russia Vladimir Putin signed a crypto regulation bill that prohibits the use of cryptocurrencies for buying goods and services. The bill is intended to go into effect in January 2020.