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The Ministry of Finance proposed to introduce criminal liability for undeclared operations with cryptocurrency
12.eleven.2021 [12:08],
Arthur Khamzin

The Ministry of Finance of the Russian Federation proposed to introduce criminal liability for owners of cryptocurrencies who do not report to the tax service on their operations. RBC writes about this with reference to the developed package of amendments. Violators face a fine of up to 2 million rubles, forced labor for five years, or imprisonment for up to three years.

Photo source: Artem Geodakyan, TASS

According to the new rules, all owners of cryptocurrency in the amount of 600 thousand rubles or more will be required to report to the tax authorities. The calculation of the amount will be based on the market price of the digital currency, and the procedure for the calculation should be determined by the Federal Tax Service. Crypto exchangers and miners will be required to provide data on their currency transactions. Failure to provide information on time faces a fine of 50 thousand rubles, and for non-payment of tax – 40% of the amount of non-payment.

Failure to submit reports on cryptocurrency ownership to the Federal Tax Service will be considered a criminal offense. If undeclared transactions in the amount equivalent to 15 million rubles are made, violators may face:

  • a fine from 100 to 300 thousand rubles or in the amount of income for a period from 1 to 3 years;

  • forced labor for up to two years with the deprivation of the right to hold certain positions or engage in certain activities for up to three years;

  • arrest for up to six months with deprivation of the right to hold certain positions or engage in certain activities for up to three years.

If violations are identified in the amount of 45 million rubles or more, violators may be assigned:

  • fine from 500 thousand. up to 2 million rubles or in the amount of income for the period ‎from 18 months to three years;

  • forced labor for up to five years with the deprivation of the right to hold certain positions or engage in certain activities for up to three years;

  • imprisonment for up to three years with the deprivation of the right to hold certain positions or engage in certain activities for up to three years.

In addition, a list of fines has been developed for organizing the illegal circulation of digital assets (DFA). Citizens can be fined from 50 to 100 thousand rubles, officials – from 100 thousand to a million rubles, and legal entities – from 200 thousand to 2 million rubles.

The Ministry of Finance claims that the amendments are necessary to implement the norms enshrined in the law on the CFA. The agency claims that this will help in the fight against money laundering. It is also argued that the project has been submitted for public discussion, but it was not possible to find it on the portal of regulatory legal acts.