Russian Prosecutor General Igor Krasnov says that the country is preparing to fight against the woes of “the criminal use of cryptocurrencies in our country”. They are amending their legislation to allow authorities to confiscate crypto assets procured illegally in Russia.
Good things come with a price, a famous phrase that can be put in the context of cryptocurrency trading worldwide. As blockchain technology develops and cryptocurrency becomes popular among investors and traders, it is not all glittery and fairy tale. The decentralized asset in the volatile market is also being ill utilized by several individuals. Lately, financial terrorism and money laundering crimes have increased in rate.
Former Laws Through Which Russia Participated In the Crypto Regulations
On 21 July 2020, the President of the Russian Federation, Vladimir Putin signed the Federal Law on Digital Financial Assets (DFA) and Digital Currencies. After getting engaged in various meetings concerning ways to incorporate the cryptocurrency, coins, and tokens in the arena of regulations under the government. [The data is taken from the Library of Congress (LOC)]
DFA and Digital Currencies billed involved regulations concerning operations of cryptocurrency, issuance of the license to trade, and security claims. Again, quoting from data derived from LOC, monetary claims, the ability to exercise rights to securities (including the rights to demand their transfer), and the right to participate in the capital of non-public stock companies.
Last year on 1 December 2020, cryptocurrency was accepted in their legislation and draft laws were passed. The Russian Federation introduced a cryptocurrency regulation bill to the State Duma (the respective country’s parliament).
The Ministry of Finance proposed the bill in mid-November. The bill includes amendments on the Tax Code in the country, regulations, and rules concerning the holding and trading of cryptocurrency, and punishable offences incurred by which act in the field of cryptocurrency.
Previously, the Russian Federation introduced the provisions that every entity (say, individuals in the territory of Russia, institutions, citizens &c.) are obligated to proclaim every transaction and holding of cryptocurrencies honestly to the legal authorities. In case, dishonesty is noticed, that is the proclamation of false information or failure to put forth the concerned details, then they will be held responsible for such an act. The respective individuals or institutions would suffer the liability of taxation. The amount is 10% of the amount which the entity holds at the market price during the time of misdemeanour made.
New Provisions To Confiscate Cryptocurrencies By Legal Authorities
Money laundering and other financial crimes have spiked in the year 2021, in Russia. Crimes such as bribing through cryptocurrency, buying illegal articles, trafficking, concealment, criminal funding, and so on. The Russian Federation was obligated to step in to take drastic measures to curb the alarming rate of crimes in the country.
Prosecutor General Igor Krasnov said that Russia and its respective authorities are engaged in preparing legislation to enforce a legal bureau that will be allowed to confiscate all the illegally obtained cryptocurrencies.
In a conference of heads of prosecutor’s offices of European states at Saint Petersburg, the respected Prosecutor General, Krasnov said that these financial crimes through cryptocurrency are becoming a challenge to the integrity and peace maintenance of the country and although the Digital Financial Assets and Digital Currencies bill was passed last year, it is not enough and the cryptocurrency regulations require an update. He said the law will “apply restrictive measures and confiscation to virtual assets.”
Krasnov also added in the conference and I quote, “The latency of these criminal acts has recently been aggravated by the use of crypto assets as bribes,” and claimed that the exchange of this asset has been “a way of laundering stolen funds” by the criminals.
This law will be soon passed as a bill in the State Duma. We are determined to keep our readers further informed with similar information.