The regulatory bodies all around the world including Russia, are monitoring the crypto market to prevent any illicit activity, including tax evasion, money laundering, or terrorist funding. Nation’s Federal Taxation Service (FTS) head Daniil Egorov during an interview with the local publication RBC on November 22, said that Crypto could potentially cause major erosion to the tax base of the nation.
The official added that the transactions can still be traced and should be reported. He said that the FTS is planning on deploying an automated tracking structure to keep track of big data volumes. Egorov stated:
“When you get into the digital space, you still leave a trail somewhere. And it’s a matter of time before this trail is identified.”
He further noted that the authority has also worked on ways to respond to crypto tax evasion activities as the officials curb such practices rather than just identifying them.
Strict regulatory actions by Russia
The revelation comes after the Bank of Russia recommended last week to make the “illegal circulation of digital financial assets” a criminal offense. This was a part of the country’s financial market goals for the 2022 and 2023–2024 periods. The central bank also intends to establish a crypto taxation system as part of a larger plan.
As TheCoinRise reported, the Russian state Duma has formed working groups to regulate the market after approving a bill on crypto taxation in the first reading in February this year.
Russia has displayed strict behavior when it comes to the crypto market. As we keep reporting the insights about Russian crypto regulators’ behavior, the Russian government has also decided to impose fees on CBDC transactions.
Sergei Khitrov, the founder of the Russian crypto event Blockchain Life, says that crypto businesses in the country have the potential of generating around $4 billion worth of tax each year. He also added that the local crypto community has shown a complete failure to learn the crypto taxation procedure in the country.