Since the beginning of the year 2021, Russian regulators have become very aggressive and strict about the disclosure of crypto-incomes. The Government of Russia had issued an order that all crypto-investors will be required to disclose their cryptocurrency assets and their incomes.
The best part of the ruling is that the citizens of Russia investing in cryptocurrencies are fully complying with it. One of the local media sources “Izvestia” has also shared a report on the recent influx of disclosures coming in from the Russians.
According to the Russian law on cryptocurrencies and digitals assets, Russian citizens are required to disclose their cryptocurrency trading incomes for tax purposes.
The local media source has gathered the relevant data through sources such as FTL Advisers, PricewaterhouseCoopers, and KPMG. Furthermore, the media sources have also gathered data from the Center for Strategic Research’s public policy think tank based in Moscow.
Maria Kukla, the partner at FTL Advisers also shared her remarks around the disclosures they have received around the cryptocurrency income figures. She stated that the citizens of Russia dealing in cryptocurrencies are complying with the new law.
Without even the government issuing any notices, the citizens have started providing income details to the government voluntarily. The government has also remarked how the citizens of Russia are participating in making the new rule a success.
With the behavior showed by the Russian citizens, it is clear that the Russians are ready to adopt cryptocurrencies and deal with them in the most streamlined manner.
Kukla stated that they are still trying to fully assess whether the regulation will be adopted on a wider scale or not. They are also trying to figure out if the regulation would work on a long-term or not.
So far, the outcome is very promising and it seems that the Russians are ready to comply with the new regulations. Therefore, to fully comply with the taxation process, the citizens are now sharing their earnings/incomes from cryptocurrency activities.
Even the director of the individual taxation division of Russia, Evgeny Sivoushkov has talked about the recent feedback from the Russian citizens. Sivoushkov has stated that the surge in the submission of the taxation documentation has been observed after the announcement of the taxation law.
The trend in the submission of the requests increased after the Russian government passed the law “On Digital Financial Assets” for cryptocurrencies. Most importantly, the Russian compliance and regulatory authorities have now started focusing more on cryptocurrency laws.
Even the banks are now fully cooperating with the regulatory authorities as well as the crypto-firms to gather necessary information.
The regulatory authorities from Russia are also making sure that even the government officials comply with the new law and declare their assets at the earliest.