Russia imposes penalties for concealing electronic money. Cryptocurrencies are not affected.

The State Duma of the Russian Federation adopted in the third reading a law introducing administrative liability for failing to provide a tax report on transfers exceeding 600,000 rubles per year via foreign electronic wallets.

\n

A fine of between 20% and 40% of the funds credited to the wallet during the reporting period is provided for using a foreign electronic wallet in breach of reporting deadlines.

\n

Legal entities and individuals conducting entrepreneurial activity without forming a legal entity face a fine equal to the amount transferred to the electronic wallet without opening a bank account.

\n

The law will take effect on 1 October 2021.

\n

As ForkLog reported, GMT Legal managing partner Andrey Tugarin said the document is aimed at countering money laundering.

\n

The amendments contain no mention of digital currency or digital financial assets and cannot extend to cryptocurrency wallets, the lawyer notes.

\n

Fines for failure to provide information about obtaining the right to dispose of digital currency, reports on transactions and its balances are already set out in the bill “On Amendments to Parts One and Two of the Tax Code of the Russian Federation,” which is currently undergoing second reading.

\n

The bill on cryptocurrency taxation in the Russian Federation was adopted in the first reading

\n

\n

“Double penalties” is officially not practiced in Russia, and if such happens, it would be a reason to appeal to the Constitutional Court of the Russian Federation, said Andrey Tugarin.

\n

Earlier, a bill obliging citizens to report to the Federal Tax Service on the use of foreign electronic wallets was submitted to the State Duma in autumn 2020.

\n

Back then, experts predicted that “ambiguous formulations” of the first draft would in the future allow extending the amendments to cryptocurrency wallets and investment accounts on crypto exchanges. The provision entered into field in December 2020.

\n

Since August 3, 2020, users of Yandex.Money, Qiwi Wallet, WebMoney, PayPal, VK Pay and other services are prohibited from making cash deposits anonymously through payment terminals and operator offices. To top up their cards they must identify themselves and link a bank account to the wallet.

\n

In March 2019, the State Duma of the Russian Federation adopted amendments to the law “On the National Payment System,” prohibiting cash withdrawals from anonymous bank cards and electronic wallets.

\n

Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news, infographics and opinions.