Russian crypto lobby group appeals to finance ministry to soften legislation

Major cryptocurrency advocates in Russia are opposing the government’s stringent approach to regulating the crypto industry.

The Committee on Blockchain Technologies and Cryptoeconomics, whose ranks include executives from major crypto exchanges Binance and OKEx, has called on the state to soften regulations that could potentially harm the crypto industry.

The committee told Cointelegraph on Dec. 9 that its members have sent their feedback to the Ministry of Finance regarding a new bill on the taxation of digital currencies such as Bitcoin (BTC). 

The lobbyists proposed a number of measures like revoking criminal liability for crypto tax reporting failures and reducing administrative fines for violations related to cryptocurrency transactions.

The group has also asked that the government not grant the Federal Taxation Service the power to determine crypto market prices for subsequent taxation, as this power could possibly be abused.

According to the committee members, the adoption of Russia’s crypto-related regulations in their current state could lead to a wave of capital outflow from the country to jurisdictions with more favorable regulations.

Gleb Kostarev, director at Binance Russia and a committee member, said that the development and implementation of regulatory and legal frameworks should actively involve the experience and expertise of global cryptocurrency companies. 

As previously reported, the Russian government is planning to officially ban payments in crypto in January 2021. Local authorities also want to introduce prison terms for failing to report annual crypto transactions exceeding $600,000.