The Russian government strengthens supervision of the cryptocurrency market to monitor and prevent tax evasion
The cryptocurrency market is being closely monitored in Russia as the government there is trying to prevent people from evading taxes using these untraceable cryptocurrencies. In an interview, Danniil Egorov, the head of the Russian Federal Tax Service (FNS) expressed concern about the negative impact that cryptocurrencies can create in the national treasury if not properly monitored. . According to Egorov, these decentralized crypto tokens have the potential to cause “significant erosion” of Russia’s tax base. FNS is also currently exploring ways to deal with crypto tax evasion.
“If we talk about cryptocurrencies, we are currently quite closely involved in this market, realizing that this system of calculations can create a pretty big erosion of the tax base.” a The report Russian media outlet RBC Group quoted tax officials as saying on Monday, November 22.
Revealing plans to install an automated tracking system to handle large volumes of data, Egorov said that it was only a matter of time before the “unreachable” link made the crypto space unique. most traceable.
“Of course, technologies are used, anonymously used to provide services to various scammers. When you step into the digital space, you still leave a trace somewhere. And it is a matter of time before this trail is identified,” added the FNS official.
In essence, cryptocurrency is a decentralized digital financial system where records are maintained using cryptography, not any banks or physical intermediaries.
As of January 1, 2021, cryptocurrencies have been declared “allowed” in Russia – but not used as an exchange for goods and services. Russians can mine, buy and hold electronic money – but using them as payment options could push people behind bars, according to The report by Forbes.
While the Russian government has been vocal about creating its own regulated digital currency, holding undeclared cryptocurrency from $1,300 (about Rs 97,500) to $13,000 (about Rs 9.7.
Cryptocurrency Regulations Around the World
Along with Russia, other countries are also looking to incorporate taxes with cryptocurrencies.
For example, in India, the federal finance ministry has established Committee to find out if income from cryptocurrency trading is taxable.
Earlier this month, the President of the United States Joe Biden also signed a new law that includes tax reporting provisions applicable to cryptocurrencies.
Meanwhile, the cryptocurrency market is exploding all over the world. Currently, the global crypto market capitalization is around $2.9 trillion (approximately Rs 2,15,66,720) according to data from CoinMarketCap.
