- The Russian government has recently instructed citizens to report their crypto holdings before 2021 ends.
- This is as a result of a newly-signed document for cryptocurrency regulations.
- Anyone who fails to disclose their digital assets holdings will face hefty fines and can even lead to imprisonment.
According to a report, the Russian government has ordered citizens to disclose cryptocurrency holdings in the year ahead. President Vladimir Putin’s order is a result of a new rule and financial guidelines on digital assets.
Civil servants and other personalities aiming for government positions must report any crypto they own or trade and their place of purchase. Without limitation, spouses and children were also included.
Meanwhile, the rule obliged individual participants to effectively fulfill their reports on June 30, 2021 as their deadline. The reports are subjected to include all kinds of held digital assets, digital securities, and utility tokens.
Specifically, the rule did not state any specific thresholds to trigger reporting obligations. But the Russian Ministry of Finance brought out a draft proposal that clarifies crypto reporting for tax purposes.
The new rule mainly provides and ensures the regulatory framework of digital asset tradings. It also gives legal rights on cryptocurrency though it disallows its payment use.
In the draft, companies and individuals must report their digital asset holdings if transactions exceed about 600,00 Russian rubles yearly. Failing to disclose data or given false information would lead to hefty fines or up to three years imprisonment.
Later on, the government came up with a lighter version of another draft bill in the State Duma. In the second draft, anyone who fails to report crypto holdings will receive a 50,000-ruble penalty.