Bitcoin in Russia will never be a favorite combination by the look of things. Even though the government and central bank want to explore blockchain technology, using cryptocurrency is a different matter altogether. For now, it seems like the Russian tax authorities want to have all Bitcoin operations reported. This is not set in stone just yet, though.
Bitcoin Taxation in Russia?
Things are very confusing for Bitcoin users in Russia right now. While cryptocurrency is not officially recognized – and probably never will – it is not prohibited by law just yet. At the same time, there is a proposal on the table to make Bitcoin activity punishable by law, including a jail sentence of up to seven years.
But that is not all, as the local tax authorities now want to collect logs of all Bitcoin transactions taking place in Russia. By the look of things, Bitcoin usage will become taxable in the country very soon. If this is to be the case, the plans to make cryptocurrency illegal by law will have to be put on ice, as the government can’t have it both ways.
Russian sources stated the following:
“Resident natural persons are obliged to provide reports to tax authorities located at the place of their registration as to account moves through banks beyond the Russian Federation pursuant to the procedures established by the Decree of the Government of the Russian Federation No. 1365 dated 12.12.2015”
For now, it is anybody’s guess as to how this situation will evolve in Russia over the next few months. More and more signs are pointing towards dropping the idea of making Bitcoin usage a criminal offense. That alone is a major victory for the cryptocurrency, even if it will not have a big effect on the adoption rates in Russia.
It is important to keep in mind these recommendations are not legally binding in their current form. There is no plan to change regulation or taxation of cryptocurrency either, but it is a possibility being considered. For the time being, using Bitcoin can be done without worrying about tax, albeit doing so may be at one’s own risk.
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