Russia updates cryptocurrency law: those who fail to declare over $580,000 in cryptocurrency will face three years in prison

According to BlockBeats, Russia updated its cryptocurrency law on November 13, and the new bill will take effect in January next year. The law is not as strict as the previous draft, but citizens may still be imprisoned for failing to declare their cryptocurrency assets.

According to previous reports, a previous draft initially set the amount at 100,000 rubles (about $1,300). Although the new bill has increased the amount, it is still very strict: the report states that if Russian residents fail to declare cryptocurrency assets worth 15 million rubles (about $195,000), they may face a lot of trouble, including 6 months in prison.

Citizens could soon be jailed for three years if they fail to declare their cryptocurrency holdings of 45 million rubles (about $580,000) or more to tax authorities.

RBC Group added that forced labor is also a potential punishment for those who fail to comply, with hefty fines levied on those who fail to declare even small amounts of cryptocurrency they hold.

Russia’s Ministry of Finance announced yesterday that it had drafted the latest bill to combat money laundering. “Compliance with these recommendations will reduce the number of transactions related to money laundering,” the bill states. The new law will come into effect in January 2021.