Russian Citizens To Report Their Crypto Wallet Details

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Russian Ministry (Courtesy: Twitter)
Russian Ministry (Courtesy: Twitter)

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 the president Putin in July, comes into force in January 2021. The Ministry of Finance 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 which 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 previous draft bill on digital assets sought harsh punishment for facilitating crypto transactions in Russia, including prison time of up to seven years.