Russian Government Increases Scrutiny of Crypto Market to Trace, Prevent Tax Evasion

In Russia, the crypto market is being closely scrutinized by the government, which is attempting to prevent people from dodging taxes by utilizing untraceable cryptocurrency. Danniil Egorov, the head of the Russian Federal Taxation Service (FNS), highlighted worries in an interview about the harmful impact that cryptocurrencies may have on the national budget if they are not adequately managed. These decentralized crypto coins, according to Egorov, have the potential to cause "substantial erosion" of Russia's tax base. The FNS is currently looking at measures to combat crypto tax evasion as well.

"If we talk about cryptocurrencies, we are now rather closely engaged in this sector, knowing that this method of calculations might cause a fairly big erosion for the tax base," a tax official was cited as saying on Monday, November 22 in a story by Russian media RBC Group. Egorov said it's just a matter of time until the "untraceable" connection that makes the crypto space unique becomes traceable, revealing plans to install automated tracking systems to analyse large data quantities. "Of course, technologies are utilised, and anonymisation is exploited in the provision of services by various scammers.