Russia’s Ministry of Finance is seeking strict measures regarding cryptocurrency use in the country, including the reporting of wallet balances and large transactions to the tax authorities.

  • According to Russian news source RBK, the ministry has prepared a package of amendments to Russia's law on digital assets.
  • The law, signed by President Vladimir Putin in July, takes effect in January 2021.
  • The Ministry of Finance has previously tried to introduce harsh restrictions for crypto transactions in the country.
  • In this latest attempt, it wants crypto users to have to report their digital wallet address, transaction history and balance if the wallet receives more than 100,000 Russian rubles (around $1,300) during one year, according to RBK.
  • Failure to report a wallet that received over $13,000 in one year would lead to a punishment of up to three years in prison.
  • Using crypto in financial crimes would also be considered an aggravating circumstance in court and could lead to more severe punishment.
  • Further, over-the-counter (OTC) cryptocurrency dealers would be obliged to report all transactions involving rubles and Russian IP addresses to the tax authorities, RBK wrote.
  • The previous draft bill on digital assets sought harsh punishment for facilitating crypto transactions in Russia, including prison time of up to seven years.
  • The most draconian parts of that proposal did not become law, following criticism from the cryptocurrency community and the Ministry of Justice and Ministry of Economic Development.

Read more: Russia’s Economy Ministry Calls for ‘Controllable Market’ Rather Than Crypto Ban

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