Crypto Hodlers Will Have To Report To The Federal Tax Service

The draft law on amendments to the Tax Code is being prepared for the second reading. In its current form, it implies the obligation of citizens to inform about the ownership of the cryptocurrency, in contrast to the existing law on digital financial assets (DFA). The draft law was expected to be significantly amended after negative reviews. However, the position of the Federal Tax Service remains tough. If the draft law is approved, this will be the beginning of the restriction of cryptocurrency in Russia.

Dmitry Ter-Stepanov, deputy general director of Autonomous Non-Commercial Organization Digital Economy, says that in accordance with standard practice, when introducing any “sensitive” legislation, a transitional period is envisaged, which is also necessary in this case. It is important to provide for a clear procedure for determining the market price of digital currency, the methods used in this determination, otherwise it will be difficult to determine the legality of business activities.

The draft law gives the FTS direct powers to determine market prices for digital currency, experts say. This is one of the most controversial issues that tax services in many countries have been working on for several years. Efim Kazantsev, a member of the commission on legal support of the digital economy of the Moscow branch of the Russian Lawyers' Association, noted that the state has firmly decided to take control of the crypto market, and such a tough position can provoke the move of cryptocurrency hodlers to other jurisdictions.

Image: Cryptopolitan