Russia has been working on some amendments to its digital assets law, according to the Ministry of Finance.
It comes within Russia’s efforts to regulate cryptocurrency by proposing a new tax requirement, according to Cointelegraph.
Russia’s President Vladimir Putin signed the law in July 2019, which came into force in January 2020.
Under the law, tax evasion on annual crypto trading of over 1m Russian rubles ($13,000) would be punished by three-year prison penalty.
Local media outlet noted that tax evasion on smaller amounts will be fined by 30% of the total crypto assets.
“Any physical or legal entity in Russia would have to report their annual crypto income if it exceeds 100,000 rubles ($1,300).”
The Finance Ministry clarified that taxable crypto assets shouldn’t be less than 50,000 rubles ($650).
Moreover, over-the-counter (OTC) cryptocurrency dealers will have to report all transactions involving rubles to the tax authorities.
The law also tackled using cryptocurrencies in financial crimes will lead to filing lawsuits against criminals.
Meanwhile, Russian lawmakers have not yet defined taxation rates for crypto transactions, according to Kommersant.
This is not the first time for Russia to introduce harsh restrictions for crypto transactions in the country.
Actually it also wants crypto users to report their digital wallet addresses, transaction history, and balance if the wallet receives more than 100,000 Russian rubles (around $1,300) during one year, according to RBK.