The Russian finance ministry has put forward proposed revisions to the country’s Criminal Code, which call for harsher punishments for crypto miners who disobey tax rules. Under the new legislation, organizations involved in mining will be required to register their revenue before they are subject to taxation. Individuals who disobey the obligation risk facing criminal charges under Article 199 of the Criminal Code of the Russian Federation, which pertains to the avoidance of taxes. The proposed legislation allows for a maximum sentence of four years in jail.
Russian Association of Cryptocurrencies Raises Concerns over Proposed Legislation
The Ministry of Finance’s proposal for punishments for miners had been sent for cooperation to the Ministries of Economic Development, the Justice Department, the FSB, and the Central Bank, to ensure that the proposal was implemented correctly. However, the Russian Association of Cryptocurrencies and Blockchain (RAKIB) has raised concerns about the proposal. It said that it has made businesses in the digital economy sector confused and uncertain.
Participants of RAKIB have approached Finance Minister Siluanov. They requested to bring leaders of the sector to this initiative for its appraisal. The letter requests the minister to ensure that members of the RAKIB are included in the workgroup. It is tasked with crafting laws to regulate cryptocurrencies.
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The proposed legislation comes as part of Russia’s broader push to regulate the cryptocurrency market. The country is currently in the process of creating a legal framework for the digital asset industry. Furthermore, this new legislation would be a significant step forward in this process.
Russia Cracks Down on Tax Evasion in the Digital Asset Industry
Russia has had a complicated relationship with cryptocurrencies. While the government has previously shown support for blockchain technology, it has also taken a hardline stance against the use of digital assets as a means of payment. The proposed legislation would bring Russia in line with other countries that have implemented strict regulations for the crypto industry, such as China and India.
The move by the Ministry of Finance is part of a broader crackdown on tax evasion in Russia. The government has been clamping down on businesses and individuals who avoid paying taxes. Moreover, the proposed legislation is seen as a way to ensure that the cryptocurrency industry is not exempt from these efforts.
In addition, this move is part of a wider push to regulate the digital asset market and to ensure that tax rules are enforced. However, the concerns raised by RAKIB suggest that there may be some pushback from the industry, and it remains to be seen how the legislation will be implemented.