Will they be imprisoned in Russia for hiding cryptocurrencies?

The state is increasingly tightening the screws on cryptocurrencies. The Ministry of Finance has developed amendments to variouslaws that provide for a whole spectral punishment for holders of digital money.Right up to the prison.

1️⃣ You will definitely need to report on transactions with cryptocurrencies

The tax authorities will need to reportreceipt of digital currency, transactions with it and its balances in the crypto wallet, if the amount of digital currency transactions in a calendar year exceeds an amount equivalent in monetary terms to 600 thousand rubles. For the first time, the ownership of cryptoassets must be reported no later than April 30, 2022.

2️⃣ Control of crypto exchangers

Crypto exchangers and digital currency miners will have to send information on transactions with digital currencies to Rosfinmonitoring.

Who will face criminal charges?

If the owners of the crypt have not provided data to the tax authority more than twice within three years or have knowingly included false information in the report.

If the size of transactions is large:

For an amount equivalent to 15 million rubles:

a fine ranging from 100 thousand to 300 thousand rubles. or in the amount of the wages or other income of the convicted person for a period from one to two years;

forced labor for up to two years with or without deprivation of the right to hold certain positions or engage in certain activities for up to three years;

arrest for up to six months with or without deprivation of the right to hold certain positions or engage in certain activities for up to three years.

For an amount equivalent to 45 million rubles, or the data was deliberately hidden by a group of persons or through the creation of a front company, the punishment will be tougher:

a fine ranging from 500 thousand to 2 million rubles. or in the amount of the wages or other income of the convicted person for a period from 18 months to three years;

forced labor for up to five years with or without the deprivation of the right to hold certain positions or engage in certain activities for up to three years;

imprisonment for up to three years with or without deprivation of the right to hold certain positions or engage in certain activities for up to three years.

In addition, it is proposed to introduce fines:

For organizing the illegal circulation of the crypt:

for citizens - from 50 thousand to 500 thousand rubles;

for officials - from 100 thousand to 1 million rubles. or disqualification from six months to one year;

for legal entities - from 200 thousand to 2 million rubles.

If digital currency was used as a means of payment for goods, works or services:

for citizens - from 20 thousand to 200 thousand rubles,

for officials - from 50 thousand to 400 thousand rubles,

for legal entities - from 100 thousand to 1 million rubles.

In all these cases, digital currency is withdrawn.

Many experts believe the penalties are too harsh. Moreover, it is proposed to punish for failure to provide reports.

Let me remind you that in the summer of 2020, Russia adopted a law “On digital financial assets”. It should come into force on January 1, 2021.