Russian President Vladimir Putin has signed legislation requiring officers to report cryptocurrencies they own.
When Will the Law Begin to Apply?
Both current officers and those who are about to assume an officer position will be required to disclose what digital assets they own, what amount and where they bought them, according to the document signed on Thursday. Initial reports must be submitted from January 1 to June 30, 2021.
The reports will include cryptocurrencies owned by civil servants, as well as their spouses and children, and all types of digital assets, including securities tokens, service tokens. People who want to participate in government levels will also be asked to report their cryptocurrencies during the application process. The notification will form part of the process of reporting the properties of candidates as a standard anti-corruption procedure.
Those Who Fail To Report Will Be Punished
Cryptocurrencies are considered a kind of property by a law signed by President Putin this summer and set to take effect in January 2021. The Russian Finance Ministry recently proposed a draft detailing the rules for reporting cryptocurrencies for tax purposes. According to the draft, if the annual transactions of individuals and companies exceeded 600,000 Russian rubles (about $ 7,800), notification would have to be made. If not reported, a fine or up to three years in prison was planned, depending on the amount of crypto money hidden.
However, the government reformed these rules. On 30 November, he submitted a softer version of the bill to the Russian parliament. According to this draft law, failure to report cryptocurrency assets on time will result in a fine of 50,000 rubles (about $ 682), and if it is not reported at all, it will be fined up to 10% of the total of all incoming or outgoing transactions.