The Committee on Blockchain Technologies and Cryptoeconomics, a Russian crypto advocacy group has called for a more relaxed crypto regulation in the European country.
According to the advocacy group, failure to ease crypto regulation in the European country could potentially harm the industry.
The Advocacy group are making the call for softer crypto regulation in response to the Ministry of Finance bill to tax Bitcoin and other digital assets.
The finance ministry previously proposed a bill that individuals have to report their holding if their holding exceeds 100,000 Russian rubles (around $1,300).
The ministry also states that violators could be sentenced to prison for up to three years. These stringent regulations are what the Russian crypto advocacy group campaign against.
Way forward: Russian crypto group proposes solution
The Russian crypto group as part of ways the government could head their request is to remove criminal liability for holders who do not pay crypto tax. They also plead that the ministry reduce administrative fines for violations related to cryptocurrency transactions.
Fearing power abuse, the Committee on Blockchain Technologies and Cryptoeconomics requested that the Federal Taxation Service should not determine crypto market prices for subsequent taxation.
The group warned that with existing or proposed governmental crypto regulations in the country, a wave of capital outflow is imminent in the country to jurisdictions with more favorable regulations.
The Russian government is working on regulations towards totally placing a ban on crypto payment by 2021. Prison sentence are also up for grab for crypto holders who do not reveal their annual transactions above $600,000.
Russia for and against crypto
The European country has been known to be against crypto. This is evident from the stringent regulations the government use to tame the crypto industry in the country.
However, the government, thanks to Prime Minister Mikhail Mishustin, a pro-crypto government official in the county proposed that actions for the country to contribute to the growth of crypto and regulate the digital asset properly.
Mikhail proposed that legal protection be provided for crypto holders and that the government should handle crypto as property under the nation’s tax code and not be determined by the Federal Taxation service.
With January approaching fast and Russia on the way to placing a ban on crypto payment, the community waits to see what the future holds for crypto in Russia.