Russian authorities will be able to confiscate cryptocurrency as "suspicious savings"

The Russian Ministry of Finance proposed to confiscate funds from citizens, the legality of receiving whichimpossible to prove in favor of the Pension Fund (PFR). The corresponding amendments to the Budget Code have already been submitted to the government for consideration.

As Izvestia found out, the Ministry of Finance is preparing amendments toArt. 46 and 146 of the Budget Code of the Russian Federation in terms of clarifying the list of budget revenues of the Pension Fund. The point is that funds are transferred to the FIU, in respect of which, in accordance with the anti-corruption legislation, no evidence has been presented confirming the legality of their receipt.

The press service of the Ministry of Finance explained:

“The Civil Code now includes clarifyingamendments that confiscated in the established cases may be not only property in respect of which no evidence has been presented confirming the acquisition of property for legitimate income, but also monetary funds - in the absence of evidence of the legality of their receipt. The bill has been submitted to the government. "

The bill states that the new rules may come into force as early as December 2020.

Now onlyproperty, if it was acquired with income, the legality of which has not been confirmed. Note that at the end of last year, the Constitutional Court clarified that it can be confiscated from any person, and not only from officials and their family members, who are subject to the law on control over the expenses of civil servants.

It is not yet clear which "suspicious savings" of citizens will be checked. The minimum amount of these funds for initiating a check is also unknown.

What about cryptocurrencies?

For cryptocurrencies that have not yet receivedofficial status in Russia, despite the recently adopted law "On digital financial assets (DFA)", the situation is ambiguous. Anatoly Knyazev, co-founder of the international investment company EXANTE, says:

“The question of which property is considered suspicious remains open. Probably, the cryptocurrency will not receive an official status, but the possibility of confiscation will appear after a court decision. "

He added that amendments have been made to the Tax Code on recognizing currency in cash as property, which will allow it to be confiscated under a new bill from the Ministry of Finance.

The process of confirming the income received incryptocurrency can be accompanied by a bunch of difficulties. For example, if you bought bitcoin several years ago and have increased your digital capital since then, you will need to collect documents proving the fact that the asset was acquired with legal funds.

Another possible problem is confirmationincome received from cryptocurrency arbitrage trading when a trader makes money by reselling coins on various platforms. In this case, there will be no single database with which to confirm capital gains.

Note that the process of confiscating digital assets- a separate question. Most investors store their cryptocurrency on trading platforms. But if the company is registered in a foreign jurisdiction, it is likely that the authorities will not be able to demand the withdrawal of funds.

Experts believe that with the adoption of the amendmentsmost investors will transfer their capital into cryptocurrency. Therefore, we can assume that the digital assets market will receive fresh money from those who are finally disillusioned with the banking system.

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