Russia’s Chief Taxman Says Crypto Could Erode State Taxation Profits

Head of the Federal Tax Service said tax evasion via crypto needs to be fought.

AccessTimeIconNov 22, 2021 at 12:21 p.m. UTC
Updated May 11, 2023 at 6:14 p.m. UTC

Daniil Egorov, head of Russia’s Federal Tax Service, mentioned cryptocurrencies as a potential means for tax evasion, in an interview with the Russian news agency RBC.

  • Asked if he noticed any “innovative” tax evasion schemes recently, Egorov mentioned crypto. ”We are watching this market closely and understand that this payment system can significantly erode the taxation base,” he said.
  • Egorov said the problem should be approached in a “systemic” way. He did not specify any details.
  • He also mentioned the Federal Tax Service has been using blockchain technology for storing electronic power of attorney letters. However, he did not provide any further details. CoinDesk requested the Federal Tax Service about the details of the blockchain project.
  • According to the current law in Russia, cryptocurrencies are recognized as a type of taxable property. The law detailing how cryptocurrency-related income should be taxed have passed one hearing in the parliament in February, but hasn’t moved forward since.
  • Russian civil servants can not legally crypto.


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Anna Baydakova

Anna Baydakova was CoinDesk's investigative reporter with a special focus on Eastern Europe and Russia. Anna owns BTC and an NFT.