Russian FTS is surveils crypto market to halt tax evasion

Crypto market has gained mainstream attention from investors globally. As the industry got mainstream, regulators and taxation authorities have also begun to eye the market. Recently, the Russian Federal Taxation Service (FTS) has also been observed monitoring the digital assets ecosystem closely to prevent tax evasion. According to Daniil Egorov, the head of the tax authority, digital currencies can potentially cause significant erosion to the nation’s tax base. Hence, as these transactions are still traceable, individuals should report.

Russian FTS seeks to curb tax evasion

In a Monday interview with the local publication RBC, Egorov cited that the cryptocurrency transactions should be reported to FTS. Indeed, the tax authority is prepared to deploy automated tracking systems to process big data volumes. The authority noted that as any individual gets into the digital ecosystem, they still leave a trail somewhere. And within a matter of time such trails could be identified.

– Advertisement –

Hence, the Russian tax authority is about to introduce ways of responding to crypto tax evasion practices. Indeed, the FTS looks to curb such activity rather than just to identify them. According to Egorov, the tax authority would like to find solutions that halt a problem as a phenomenon rather than just identifying actions by a specific player. 

Russians will have to report their transactions

The news of the FTS’ preparations revealed after the Bank of Russia (BoR) proposed to roll-out criminal liability for “illegal circulation of digital financial assets”. Notably, the liability will be introduced as part of the national financial market goals for 2022, and the period of 2023-24. It is also noted that as part of the proposal, the BoR is looking to establish the crypto taxation policy.

In February, the Russian State Duma approved a bill on cryptocurrency taxation. The bill was approved in the first reading, that requires residents to report their digital currency transactions of a total amount exceeding $7.8k.

Cryptocurrency firms can generate $4bn worth taxes

Sergei Khitrov, the founder of the Russian crypto event, Blockchain Life has noted that the digital assets businesses in the region could potentially generate $4 billion worth of taxes each year. He further cited that the local digital currency community has so far demonstrated a complete failure to understand how to pay tax on virtual assets.

Source: Russian FTS is surveils crypto market to halt tax evasion

*This is a free press release. Upgraded press releases are ad-free!

Apple Global Battery Development Chief Moves to Volkswagen

A woman walks past an Apple logo in front of an Apple store in Saint-Herblain near Nantes, France, on Sept. 16, 2021. (Stephane Mahe/Reuters) SAN FRANCISCO—Apple’s global battery development chief, Ahn Soonho, has moved to Volkswagen to lead the automaker’s development of electric vehicle batteries, according to his Linkedin profile. This is the second time…

Read Press Release

How Much of All Money Is in Bitcoin?

After its launch in 2009, Bitcoin ushered in a new era of blockchain technology and digital currencies. Given all the talk about Bitcoin, you’d think it would be everywhere. Is that really true? How much is Bitcoin worth? Perhaps more importantly, how much of the world’s money is in bitcoins? With the price of BTC…

Read Press Release

Russian FTS is surveils crypto market to halt tax evasion - Click To Share

Share on facebook
Share on twitter
Share on reddit
Share on linkedin
Share on email
Share on whatsapp