Russian Federation Officials May Not Be Required to Declare Crypto-Income

The Ministry of Labor for the Russian Federation updated the rules regarding income declaration for public officers. Among the new recommendations to declare income, there is also a provision on cryptocurrencies. Officials are obliged to declare all received incomes, gifts, but officials are allowed not to indicate income from cryptocurrency in the declaration for 2017.

On the one hand, it is natural to think that cryptocurrencies will become a new weapon for the hands of corruption. Moreover, the growth of corruption in Russia has reached 30% since 2008. However, the Ministry of Labor is convinced that this exclusion from the rules will not lead to an increase in corruption and bribing by civil servants using digital assets.

The ministry notes that in fact, the cryptocurrency is not officially recognized as a means of payment, so the officials can not spend it. But if there is an act of selling digital money and exchanging it for real money, this should already be included in the declaration. However, there’s an issue of buying goods on foreign websites, that accept cryptocurrency, and small businesses, offering goods for cryptocurrency through intermediaries in Russia. These shortcomings can be used by officials, and it shows that the legislation is not yet ready for the full circulation of cryptocurrency in the country’s economy.

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