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Russian Officials Must Now Declare Crypto Assets as Income

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Russian Officials Must Now Declare Crypto Assets as Income

Officials in Russia are now required to declare all crypto assets they hold as income. According to local media reports, the measure will take effect on January 1, 2021.

Russian Prosecutor General Igor Krasnov declared that starting next year, officials will have to declare [virtual] currency on an equal basis with other assets.

Krasnov delivered the aforementioned speech at the corruption conference on October 20. 15 prosecutors from the member states of the Shanghai Cooperation Organization (SCO) and other regions attended the conference.

According to Russia Today, Krasnov’s statement also means that officials must include cryptocurrency in their income statements so that the state can track the income of all officials.

So far, officials have not had to declare their crypto assets. The consultations of the Ministry of Labor of Russia in 2018 seem to rule them out.

However, over the past three years, the Attorney General’s Office has seized $440 million in undisclosed cash from officials. According to industry media reports, this was over concerns that cryptocurrencies were being used for oil corruption.

New requirements for civil servants were signed after Russian President Vladimir Putin signed a new law that legalizes bitcoin in a general sense but prevents cryptocurrencies from becoming legal tender to pay for goods and services.

The law (“Digital Financial Assets Law”) is expected to enter into force on January 1, 2021. The law requires all officials to declare that they own encrypted assets. 

The SCO is a political, economic and security union, consisting of eight countries. It was founded in 2001 by China, Russia, Kazakhstan and Tajikistan. It also includes several affiliated countries such as Iran, Belarus, Cambodia and Afghanistan.

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