More Crypto Regulation Coming in Russia and Beyond, Warns Key Lawmaker

Bitcoin Regulation Russia Tax

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Tim Alper

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Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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June 26, 2023 06:54 EDT

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Russian politicians have issued another grim-sounding warning about forthcoming crypto regulations, hinting that 2021 may have some less-than-welcome surprises in store for the nation’s crypto community – as well as crypto enthusiasts based overseas.

Per a report from radio station Govorit Moskva, Anatoly Aksakov, the head of the State Duma Committee on Financial Markets and the chief deal-broker of Russia’s crypto legislation, stated,

“[Crypto] taxation and crypto holdings declarations are already in force. And there will only be increasing levels of control placed on the holding of cryptoassets to come. It is obvious that in the very near future, I think probably within 2021, [crypto] will be placed under strict regulation in virtually every country.”

He added that a bill proposing stricter crypto regulations had reached the committee stage in sessions late last year, a sign that politicians are prepared to usher in proposals some crypto players in Russia have called “draconian.”

Aksakov underlined that all citizens’ “digital savings” should be taxed, warning that “criminal penalties” would be enforced on non-compliant individuals.

He added,

“In Russia, the use of bitcoin (BTC) and other cryptoassets as a means of payment is prohibited. There are no signs that a change in legislation allowing cryptoassets to be used as a means of payment in Russia will be forthcoming.”

The same media outlet also reported that a prominent Russian economist painted a similarly bleak picture, claiming that more BTC growth could be on the cards – at a cost.

The radio station interviewed Mikhail L. Khazin, the author of the book Sunset of the Dollar Empire and the End of the Pax Americana, who opined,

“When any asset experiences rapid growth, it is accompanied by regular recessions. The rise in bitcoin prices is associated with the fall of the dollar against the backdrop of large problems in the United States and in the American stock market. Thus, for now, bitcoin prices are likely to [keep growing].”

Khazin also predicted regulation was all but inevitable.

“Any attempt to transact using bitcoin will be viewed by finance ministry officials and the tax authorities as tax evasion. I think that legislation will be adopted soon requiring bitcoin owners to report all of their transactions to the tax authorities,” he concluded.
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