Russian Ministry of Finance Says Large Bitcoin Transactions Must Be Reported to Prevent Money Laundering
Posted on November 13th, 2020 by Kyle Torpey and filed under Bitcoin.
Russian Deputy Finance Minister Alexei Moiseev shared his view that large, unreported bitcoin transactions should lead to prison time a day after a related proposal was announced by the Russian Ministry of Finance.
According to Russian Deputy Finance Minister Alexei Moiseev, there is a need for criminal penalties for the use of bitcoin in large transactions that are not reported to the authorities. In Moiseev’s view, the fact that the origin of funds used for a bitcoin transaction are not easily verifiable by default means they are a form of gray capital.
“If we are talking about money that is in banks, it means that some system has already checked them, where they came from and so on. The same is true for real estate. As for cryptocurrencies, there is no such thing,” reads a DeepL translation of a quote by Moiseev reported by Russian cryptocurrency news website Forklog.
According to Moiseev, Russia and other nations around the world have also noticed an uptick in the use of cryptocurrency for the purpose of money laundering. That said, a March 2020 report from blockchain analytics firm Chainalysis found only 1 percent of the cryptocurrency transactions in 2019 were associated with illicit commerce.
On Thursday, Russia Todayreported that the Russian Ministry of Finance has proposed up to three years of prison time for cryptocurrency users who do not declare large bitcoin transactions to the proper authorities. Specifically, Russians could see prison time if it is found that they did not properly declare their cryptocurrency transactions for two years out of a three-year period of time and those transactions amounted to $585,000 or more of value transfer.
As bitcoin continues to grow, it is likely to come under heavier scrutiny from regulators and lawmakers who view the cryptocurrency as a way to avoid the various financial and monetary controls that are placed on the global economy in various jurisdictions around the world. However, bitcoin was intended to be resistant to these sorts of government attacks.
Kyle is the creator of The Crypto Feed. Before founding The Crypto Feed, Kyle was a longtime freelance Bitcoin writer at places like Forbes and Bitcoin Magazine.