Russia Criminalizes Crypto Mining in Tax Evasion Scheme
Almost sounds like an oxymoron, yet Russia is doing just that. The nation recently proposed a revised bill that suggests prison time for crypto miners who evade taxes. Let’s break down this madness.
Capitalizing on Tax Loopholes
Draft legislation in Russia suggests that individuals or groups who take part in crypto mining without proper registration should face hefty fines or jail time. The personal income generated from digital asset activities like crypto mining are not currently regulated, which has allowed some money-hungry individuals to partake in tax evasion schemes.
Crypto Mining – A Risky Endeavor?
The Russian financial authorities are likely feeling the heat, with some miners reportedly dodging the current tax code. With no oversight of how much digital currency is being moved, it’s easy to make some shady deals. It’s enough to leave law enforcement with a migraine!
Will The Law Pass?
It does appear that this proposed legislation will pass, with an expected ratification by the parliament and president before the end of the year. But for now, let’s take a moment to explore the consequences of crypto miners dodging the system:
- Fines – Crypto miners could face fines upwards of one million rubles or ~$17,000 USD
- Imprisonment – Miners could face up to five years in prison for tax evasion
- No Crypto Use – The legislation implies that digital assets can’t be used for payments or stored for investment purposes
Most of us will never have to face the consequences of these updated laws, so let’s take this time to give a little chuckle. The scariest aspect of this bill is the potential five year sentence! Might as well have said, “and you were sentenced to a life of Crypto mining in Siberia!”
At the end of the day, no one wants to pay taxes, but it is a fact of life, so don’t let a term in prison be your reality. Stick to the laws, folks!
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