Russia’s insistence on crypto asset declaration will see government officials required to disclose their cryptocurrency holdings beginning from 2021.
After years of unclear crypto regulations, the country is finally moving towards codified digial asset laws.
Crypto Holdings Included in Asset Declaration for Russian Officials
According to a decree signed by Russia’s President Vladimir Putin on Dec. 10, government officials have between Jan. 1 and June 30, 2021, to disclose their crypto holdings.
Also, candidates vying for office or entry into the civil service must also file their holdings as part of their asset declaration.
This declaration will cover not only their individual cryptocurrency assets but also holdings belonging to their spouses and non-adult children.
In addition to signing the decree, President Putin also urged the central bank and other relevant oversight stakeholders to enforce the law when devising protocols for asset declaration.
The President’s ascent finalizes a draft law initially announced back in October. At the time, the move was a reversal of a 2018 policy that precluded civil servants from having to declare their cryptocurrency assets.
With crypto now recognized as property in Russia, it’s perhaps unexpected to see this rule reversed, at least for tax purposes. As previously reported by BeInCrypto, recent amendments to Russia’s criminal code have come with stiff punishments for undisclosed cryptocurrency assets.
Fines and Jail terms for Lawbreakers
Individuals and corporations with undisclosed crypto holdings exceeding 100,000 rubles (~$1,300) risk facing a 50,000 rubles (~$650) fine or forfeiture of 30% of their cryptocurrency funds.
Those who fail to disclose crypto funds above 1 million rubles ($13,000) could face even stiffer punishment in the form of a three-year jail term.
Back in November, Russian Prime Minister Mikhail Mishustin assured crypto holders of the government’s commitment to offering legal protection for their assets. However, this legal coverage is contingent on full disclosures of their cryptocurrency holdings.
Meanwhile, Russia’s central bank is reportedly considering the creation of a digital ruble as central bank digital currencies (CBDCs) become even more popular.