Monday, January 17, 2022
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Russian Authorities Are Concerned About Cryptos as Means for Tax Evasion

Daniil Egorov is the head of Russia’s Federal Taxation Service (FTS). He worries that cryptocurrency could become a way for tax evasion. Egorov stated that the Russian Federal Taxation Service (FTS) is closely monitoring the crypto market and assessing the potential for it to’significantly undermine the country’s taxation system.

“You still leave a trail when you go into digital space. Egorov said that it was only a matter of time until this trail is found. The chief of the tax agency stated that the matter should be dealt systemically. However, he did not provide any further information.

He was aware that FTS uses blockchain technology for electronic power-of-attorney letters. Egorov stated that he would rather find solutions to a problem than identifying specific players.

Sergei Lavrov (Russian Foreign Minister) said that cryptocurrency could play an important role in international settlement deals at Primakov Readings Forum. These comments were made in context of the Minister’s speech where he stated that Moscow doesn’t plan to abandon US dollars completely.

Lavrov said that cryptos could be used in certain international settlement use cases. He stated that cryptocurrencies would play an important role in trade and finance and will be a significant part of the international settlements sector.

Digital Ruble for the Making

Russia’s central bank digital currency initiative (CBDC), has made significant progress. The country is determined in developing a prototype digital ruble prototype by 2022. A pilot program is also planned. According to reports, the Bank of Russia will charge fees for CBDC transactions. Prime quotes Kirill Pronin as the Director of the Financial Technologies Department at the Bank of Russia. However, Prime claims that the fees will be lower than wire transfers.

Additionally, transactions made with CBDCs, digital ruble and won’t be any higher than those done through the Russian Faster Payments System, an instant interbank transfer system.

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