Russian Government Employees Do Not Have to Declare Cryptocurrency Gains

Ministry of Labor’s representatives stated that they do not require cryptocurrencies to be declared due to Russia’s lack of legislation in the industry.

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Local media outlet Izvestia reported that the Russian Ministry of Labor’s updated Russian government employees expenses, income and property declaration guidelines for 2017. It is included a point about cryptocurrencies. The updated regulations clarify that government’s employees do not have to declare any virtual currencies they obtained.

The note about the cryptocurrencies was an addition to an already existing point that claimed government’s employees do not have to declare services and goods in their natural forms, adding with a few words “as well as virtual currencies.”

Ministry of Labor’s representatives stated at local news outlet RBC that they do not currently require cryptocurrencies to be declared due to Russia’s lack of legislation in the industry.

Is there any risk of corruption?

Since 2009, the Russian officials have to make public declarations regarding their income. Some industry experts expressed their concerns to Izvestia that these rules could increase the risk of receiving bribes in cryptocurrencies.

On the other hand, “Business Against Corruption” Center’s Vladislav Tsepkov, (an organization that Russian government created in 2011 in order to protect entrepreneurs’ rights), told Izvestia that the risk of government employees taking bribes in cryptocurrencies is minimal. He explained that cryptocurrency is not a means of payment, so it cannot be spent. If the employees want to sell it and earn real income, then they have to declare it. According to him, the risk of corruption is minimal.

Note that these changes come at a time when Russian corruption is growing day by day. According to the statistics on the subject, since 2008 the corruption has raised over 30% in Russia.

Russian government still keeps a negative stance towards cryptocurrencies.

The Russian government is yet expected to create legislation that completely covers cryptocurrencies. The country’s central bank and government have a negative stance overall on the subject. They refer cryptocurrencies as “high risk,” especially for the mainstream investors.

Also read: Bitcoin-related ETF Proposals Withdrawn after SEC’s Request

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