For reasons of transparency and the fight against corruption, political figures elected to positions of responsibility and administrative officials are required to declare their assets. The practice of preventing cases of illicit enrichment now has a wider application in Russia. Indeed, Vladimir Putin has just signed a decree requiring officials to report any possession of crypto currency. As cryptocurrencies very often escape tax control, this decision should make it possible to remedy this phenomenon.
Declaration of cryptographic assets extended to all family members
Current and future officials of the Russian state must now provide a report detailing the digital assets in their possession. This includes both cryptocurrencies and digital securities that belong to their spouses and children. The first reports of this kind must be submitted by the interested parties no later than June 30, 2021. Details such as place of purchase or origin, as well as the quantity of these digital assets must also appear in the relevant reports.
The measure that was signed by the president Vladimir Poutine also concerns the candidates for the various elections as is customary for other types of goods. The move follows the passage of law recognizing cryptocurrencies as a type of property in the country. This will come into force at the start of next year., the period at which the tabling of reports will begin.
Strict regulations on reporting crypto assets
Several bills on the declaration of crypto assets have been proposed so far in Russia for tax purposes. The least we can say is that these presented fairly strict conditions for the population. In one of these versions, individuals and companies had to declare their assets as soon as the 600,000 Russian rubles mark was exceeded in terms of annual transactions. Failure to comply with this rule would therefore result in fines or prison terms of up to three years.
After consultation with the various actors, a compromise was finally found to lighten the content of the law. This was notably presented by the government to parliament on November 30. Thus, a delay in the declaration process will now be punished with a fine of 50,000 rubles. With regard to undeclared property, the culprits will be exposed to a fine of 10% of the sum of all transactions, whichever is greater.
Initially silent on the subject, the Russian government has gradually provided the country with a clear regulatory framework on the possession and use of cryptocurrencies in the country. Some restrictions were however made in an effort to promote the local CBDC by next year.