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Putin Orders Russian Government to Prepare to Check Officials With Crypto Assets

Putin Orders Russian Government to Prepare to Check Officials With Crypto Assets

President Vladimir Putin has tasked several ministries and the central bank to prepare to verify information provided by government employees about their digital asset holdings. The order comes as part of a new plan to combat corruption which was recently approved by the Russian leader.

Authorities to Inspect Crypto Disclosures Filed by Russian Officials as Putin Approves Anti-Corruption Plan

Russian President Vladimir Putin has signed a decree approving the country’s National Anti-Corruption Plan 2021-2024. As part of the new strategy, the Russian head of state has instructed the ministries of finance, labor and digital development, along with the central bank, to propose inspections of officials who are obliged to disclose their digital assets and currency.

Putin Orders Russian Government to Prepare to Check Officials With Crypto Assets

The government departments and the Bank of Russia have until Nov. 15 to submit their proposals, the Russian business news portal RBC reported. The eventual checks must be able to properly establish how accurate and complete the data provided by the officials regarding their cryptocurrency investments actually is.

The institutions will have to also analyze the practices currently in place for the disclosure of information about the ownership of digital assets and the controls over expenses for their acquisition. The deadline for this task is Sept. 20, 2023. And before July 15, 2024, the Prosecutor General’s Office should present initiatives aimed at suppressing corruption related to digital financial assets, digital rights (tokens), and cryptocurrency, the report details.

Private Crypto Investors Shouldn’t Worry for Now but the Noose is Tightening, Experts Warn

Last year, Vladimir Putin signed an order compelling government employees to declare their cryptocurrency holdings. Russian officials were required to submit detailed information about where they bought the digital assets as well as their value by June 30, 2021. The obligation also applies to their spouses and children as well as candidates for public office and their families.

Ordinary crypto investors have nothing to fear for now, but they shouldn’t relax either, according to Efim Kazantsev, an expert at Moscow Digital School. The regulatory process regarding the cryptocurrency space in the Russian Federation “follows a path of tightening the screws,” he commented while also noting:

The state’s desire to take the crypto sphere under tight control is visible to the naked eye.

In the Russian law “On Digital Financial Assets,” cryptocurrency is also defined as property that’s subject to declaration and oversight in terms of the origins of the funds spent for its acquisition, pointed out Roman Yankovsky from the Moscow branch of the Russian Lawyers Association. He emphasized that despite the new presidential decree is not targeting private investors directly, it can affect all market participants.

Do you expect the Russian government to eventually go after ordinary crypto investors? Share your thoughts on the subject in the comments section below.



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