The Russian Ministry of Finance continues to promote regulations for the cryptocurrency industry by proposing new tax claims.

It is reported that the ministry now wants to criminalize non-taxation of cryptocurrencies, including imprisonment for up to three years.

According to a report published by Kommersant on September 24, the ministry proposes that individuals who do not report an amount exceeding 1 million RUB (13,000 USD) in annual cryptocurrency transactions, should serve a sentence of three years in prison or hard work. …

The Ministry has also proposed large fines for small, unregistered amounts. Thus, any individual or legal entity in Russia will have to report their annual income from cryptocurrency if the amount exceeds 100,000 rubles (1300 US dollars). The report notes that failure to submit such amounts will result in a fine of 30% of the total amount of available crypto assets, but not less than RUB 50,000 (USD 650).

The authorities also propose requiring local cryptocurrency exchange services to report tax transactions on a quarterly basis.

According to Kommersant, the new proposals are linked to both the new Russian law on cryptocurrencies “on digital assets” and the forthcoming draft law “on digital currency”. In the current version of the law on “digital assets”, Russian legislators do not set rates for cryptocurrencies or general rules for reporting these transactions.

It is not immediately clear what type of cryptocurrency the ministry wants to tax, as the authority only recognizes a few ways to obtain cryptocurrency. In early September, the ministry proposed introducing a complete ban on cryptocurrencies, with the exception of receipt in three ways: inheritance, bankruptcy and mandatory procedures.

Source: CoinTelegraph