The Russian Ministry of Finance has updated its proposed bills for cryptocurrencies and included new penalties for citizens failing to declare their digital currency holdings.
Reported by local news agency Kommersant on Thursday, the proposed bill wants Russian cryptocurrency holders to report on all crypto transfers to the tax authorities.
Any failure to report transactions above 1 million rubles (around $12,925) will attract a monetary penalty of up to 300,000 rubles ($3,877) or imprisonment of up to six months. For crypto transfers above 5 million rubles ($64,625), the jail time can be up to three years, along with a fine of 500 thousand rubles ($6,462).
Apart from individuals, the proposed legislation also want exchanges and other Russian organizations to report on their cryptocurrency transactions quarterly.
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The ministry introduced another set of proposed legislation on crypto earlier this year seeking restrictions on the circulations of digital currencies in the country. Along with similar fines, those bills proposed prison time of up to seven years, depending on the amount involved.
According to the report, the ministry sent the updated documents to many other departments, including the Ministry of Digital Industry, the Ministry of Internal Affairs, the Federal Tax Service, the Prosecutor General’s Office, and the Central Bank.
Cannot Use Cryptocurrencies for Payments
Meanwhile, the country legalized digital currencies, labeling them as property, but banned their use as a mode of payment. President Vladimir Putin already signed this law that will come into effect at the start of 2021.
Earlier this year, Russia also banned cash deposits to all online anonymous wallets, including Yandex.Money, QIWI-Wallet WebMoney, PayPal, VK Pay, and a few more, as its push to curb illegal financial activities.