Russian regulatory bodies have been criticized for their actions regarding the cryptocurrency industry in the country. According to Yuri Pripachkin, head of the Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (Racib), their actions are still “half-hearted” and are not aimed at finding a systematic solution for Russia’s state policy in the field of digital assets. In a situation determined by insufficient and opaque legislation, Russian crypto users find themselves forced to export an estimated 18 trillion ruble ($255 billion) worth of funds outside the Russian economy.
The bill stipulates that cryptocurrency must be treated as “personal assets” subject to a mandatory declaration with the Russian tax authorities (Bill No. 1065710-7, art. 38, § 2) and obligates citizens, residents, registered legal and corporate entities, registered representations of foreign companies, and international institutions on the territory of the Russian Federation to inform authorities about digital currency possession rights they have obtained, digital currency transactions, and digital currency balances.
While the initiative would grant Russian crypto owners the right to legal protection, it would also enable regulators to impose a 13% tax on gains made from cryptocurrency investments.