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Revised bill proposes jail time for Russian crypto miners who evade tax – Mining Bitcoin news

A draft law regulating crypto mining in Russia will see harsh penalties for miners who fail to report digital assets to the state. In its most recent revision, the bill also threatens those involved in the illegal trade cryptocurrencies organized, punished with imprisonment and heavy fines.

Forced labor awaits miners and traders who operate outside the law, according to the new law

Russian crypto miners must report their income and provide tax authorities with detailed information about their digital assets, including Walletaddresses to avoid prosecution by the state. This emerges from a draft law that is currently being revised in Moscow.

A bill designed to regulate Russia’s growing coin minting industry was originally put before parliament in November. However, its passage was later postponed to this year, and lawmakers now plan to resubmit it with amendments that envisage severe consequences for miners who don’t comply with the rules.

The Russian Ministry of Finance, which is working on the changes, now wants to introduce severe penalties for those who evade declaring their cryptos. These include millions of dollars in fines and jail terms, online news outlet Baza reported.

According to the Criminal Code amendments prepared by the department, miners face up to two years in prison if they fail to report their income twice within three years and the value is more than 15 million rubles (nearly $200,000). a fine of up to 300,000 rubles and even hard labor for up to two years.

If the amount of unreported assets exceeds 45 million rubles in fiat equivalent (nearly $600,000), the punishment will be harsher – up to four years in prison, a fine that can reach up to 2 million rubles, and forced labor for report in more detail for up to four years.

The updated law takes an even stricter stance on crypto trading

Crypto mining companies have two options for selling the extracted cryptocurrency – on a currency exchange or on a Russian trading platform established under “experimental legal regimes” that have yet to be established. The Bank of Russia insists on this in order to support the legalization of mining.

Exchange operators, banks or other legal entities are entered in a special register and, if necessary, coin trading activities outside the described legal framework are considered violations of the law, the penalties of which are even harsher than those prescribed for miners. “Illegal organization of circulation of digital currencies” will result in imprisonment for up to seven years, a fine of up to 1 million rubles and hard labor for up to five years.

In the latest version of the Mining Act, the drafters have also added anti-money laundering provisions. According to the texts, cryptocurrency holders are “obligated to provide the authorized entity with information about their digital currency transactions (dealings) upon its request.”

What is your opinion on the new amendments to the Russian draft law on crypto mining? Do share your thoughts on this topic in the comments section below.

Revised bill proposes jail time for Russian crypto miners who evade tax – Mining Bitcoin news, Crypto Trading News

Lubomir Tasev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchen’s quote: “Being a writer is what I am, not what I do.” Besides Crypto, Blockchain and fintech, international politics and business are two other sources of inspiration.

photo credit: Shutterstock, Pixabay, Wiki Commons, Akimov Igor /

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Source: Crypto News Deutsch

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