Russia May Be the First to Become the Blockchain Savvy Account
It was revealed just recently that the Ministry of Finance in Russia is constantly on the track of setting rules and regulations for the cryptocurrency and blockchain industry. The regulation will make it completely safe for the investment parties as well as managing Governments. Now that the crypto-blockchain has started taking the shape of a stable, reliable, and secure industry on the Russian soil, the Russian Ministry of Finance has introduced another regulation, which would require for the crypto-operating entities to meet certain tax requirements.
Following to the tax requirement regulations, the Ministry of Finance has proposed a new law, which would hold people liable to face criminal charges if they try to evade showing their crypto-taxes. In addition to the criminal charges, the people failing to adhere to the regulations would face imprisonment that may go up to three years.
As per the recent report posted by Kommersant on September 24, 2020, if individuals involved with the cryptocurrency operations fail to report an amount of $13,000 (1 million Russian rubles) in annual asset audits, they would face the punishment of either facing three years in prison or hard labor.
Furthermore, the Russian ministry also added more regulations to the proposed rules which involve the individuals to pay major fines if they are caught hiding their cryptocurrency amounts. As per the regulation, any individual or company investing in the cryptocurrency industry must report their annual income from the crypto-sources if their income amount exceeds 100,000 rubles ($1,300). However, if the physical or legal entity is found evading taxes by not reporting them even when their annual income is more than $1,300, they will be required by the law to pay 30% of their crypto assets held value in the form of fine, which cannot be less than $650 (50,000 rubles).
However, with the current situation in Russia, the main challenge was how to keep track of each individual’s crypto-assets. The Ministry of Finance has proposed another regulation to tackle this challenge by adding that the cryptocurrency exchanges will be legally responsible to share the transactions made on taxes per quarter for every Russian citizen or entity.