Russia Wants Criminalizing Non-Disclosure of Crypto Transfers

The Russian Ministry of Finance has updated its proposed bills for Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term 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.

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 Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term

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.