• With the new order, workers have to include information on their acquisitions of digital assets and their valuation by 30 June 2021.
  • The Russian President Vladimir Putin signed a bill earlier this year giving the cryptocurrencies legal status.
  • Russia’s Finance Department is working on additional legislation in its cryptographic space.

Russian President Vladimir Putin has signed a decree ordering government employees to report their assets in cryptocurrency.

This order requires workers to include information on their acquisitions of digital assets and their valuation by 30 June 2021. In addition, according to an agreement signed on November 10, children and spouses of government officials have to report their digital asset holdings. In the meantime, Russian government employees are expected to state as part of the new criteria, which also apply to people running for public office:

“The name of the digital financial asset indicated (if it cannot be determined, the type and scope of rights certified by the issuer of the digital financial asset are indicated). Additionally, workers can also report digital rights, including both digital financial assets and other digital rights.”

The Order further requires employees to include key points of the funding platforms used by the federal government. The decree requires workers to “specify the title of the operator of the financing network, its identity, along with the requirement to specify the ‘distinguishing conference that defines the software virtual correctly.’ (The) quantity of taxpayers and a major quantity of state registers.” The disclosures supplement the regular anti-corruption protocol, which normally required reporting of candidates’ property. The Russian law that signed Putin this summer, and which enters into force in January, recognizes cryptocurrencies as a form of property.

All kinds of digital properties, such as cryptocurrencies, digital securities, and tokens belonging to a public servant, his wives, and children, must be recorded. In the application process, those who pursue governmental positions must also publish a cryptographic declaration.

The Russian President signed a regulatory contract granting the cryptocurrencies criminal status in the past due July, rather than the current request. However, the use of cryptocurrency in the form of costs is forbidden. Before the new order was signed, in late July the Russian President signed a bill giving the cryptocurrencies legal status.

Nevertheless, this measure forbids the usage of cryptocurrency as a payment tool. There are no clear thresholds in this document to trigger reporting obligations. But according to proposals, if the total sum of transactions is over 600,000 rubs (approximately $8,200) over the calendar year, Russians will be forced to report their crypto-holdings to the tax authorities.

Russia’s Finance Department is working on additional legislation in its cryptographic space. The ministry wants to create a means for the regulated circulation of digital coins to prevent the spread of an unregulated financial market. Officials said they have implemented new reforms to establish a set of new rules in the country for miners, traders, and crypto holders.

It is a criminal offense to refuse to report or knowingly supply data in a wrongful way. Penalties on unreported crypto transactions range from 500,000 to 2 million rubles, a sentence up to three years, and a fine, as suggested by the Ministry of Finance. Therefore, this new order, along with the amended proposals forwarded by the Minister of Finance to the Parliament (Duma) in late November, seems to remain the case. Indeed, the Russian Government’s recent steps and efforts reiterate the liabilities resulting from its digital currency its staff. Recently Russia’s Biggest bank has launched their own stable coin getting more adoption for cryptocurrencies. 

 

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