Russia's massive surveillance of crypto currency transactions seems to have one key blind spot: There seems to be no responsibility for criminals who use digital resources to carry out illegal transactions.
On Thursday, the Russian Ministry of Finance proposed new amendments to the national crypto currency laws to clarify rules on tax evasion. According to the proposed guidelines, Russians may face up to three years in prison for failing to report transactions of 45 million roubles (583 thousand dollars) or more, at least twice in three years.
The Ministry's earlier proposal recommended three years' imprisonment for anyone who fails to report a transaction worth more than 1 million roubles ($13,000).
Citizens must also report transactions and wallet amounts exceeding 600,000 roubles ($7,700) per calendar year. Failure to report transactions in time may result in a fine of RUB 50,000 ($640).
Strangely enough, the new guidelines do not hold any responsibility for criminals who continue to use crypto currency for illegal transactions.
The Russian crackdown on crypto owners takes place at a time when policy makers are seriously considering the advantages of the central bank's digital currency, the CBDC. The Bank of Russia is expanding its efforts to understand the CBDC in the wake of the COVID-19 pandemic, which had a destabilizing effect on monetary policy.
