Russia plans to jail undeclared Cryptocurrency Wallet holders for 3 years

An undeclared crypto wallet owner in Russia receiving more than $13,000 could face up to three-year jail term or community sentencing.

By · Sep 25, 2020 . 6min read

Russia Cryptocurrency wallet news
Source : IStock

Russia which has enacted stiff cryptocurrency compliance laws is said to have prepared a draft law which proposes up to 3-year jail term for any crypto wallet holder who fails to declare such wallets if this draft becomes law.

The country’s Ministry of Finance (Minfin) according to Kommersant, a Russian news outlet prepared the bill and sent to the relevant departments within the Russian government.

According to the draft document, any person (natural or legal) who has received digital currency or digital rights for more than 100 thousand rubles ($1,300) is to self-report to tax authorities. Failure to comply means the person could face a fine of 30% of the proceeds received not less than 50,000 rubles ($650).

Even more, if within a year, an undeclared cryptocurrency wallet owner in Russia has received more than 1 million rubles ($13,000) such could face up to three-year jail term or community sentencing with hard labour.

Some experts on Russian cryptocurrency legislation have dismissed this draft as a rush. Some opine that some characterizations in the draft bill “simply does not exist in the Russian legal system”. Hence some say “hardly anyone will take this position seriously.”

However, Russia’s Ministry of Finance position on this is not sacrosanct. It means the draft bill is subject to amendment. Minfin is organizing a meeting which holds sometimes this week.

Russia’s proposed jail sentencing for those who fail to declare their cryptocurrency wallets has been in the works

There’s no doubt as to Russia’s capability to track and jail users of undeclared cryptocurrency wallets no matter how difficult. Interestingly, Russia already started developing its crypto tracer to help it keep an eye on this kind of matter.

Even before the crypto tracer initiative, Russia’s President Vladimir Putin already signed into law banning crypto for use as payment. And to reiterate their position as a stiff nation on anonymous financial transfers, it banned wallet operators from accepting such. Russia adopted this position to curb terrorism-related money laundering bans anonymous wallets and travel cards transfers. However, many have said this policy is mainly out for cryptocurrency users. It also took a strong stand against opposition and activists figures receiving Bitcoin payments or other forms of crypto donations.

In all, it appears Russia is tightening its noose on cryptocurrency with many of these anti-crypto policies and legislations.

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