The Russian parliament has passed a new rule requiring candidates for public office to disclose their digital asset holdings. The bill will change many statutes and apply to presidential and parliamentary candidates and government employees.
On Wednesday, Members of the State Duma, Russia’s lower house of parliament, have passed a measure requiring election participants to register their cryptocurrency holdings. The Moskovsky Komsomolets newspaper stated that it asks candidates to submit information about their expenditure on digital financial assets and digital currency.
The new legislation will make changes to the rules regulating the election of the Russian Federation’s President, lawmakers in the Duma, members of the Federation Council, the upper chamber of parliament, and the establishment of political parties and attempts to combat corruption.
The candidates and their spouses and children will be required to divulge their financial details. They must all report each transaction involving the purchase of cryptocurrencies in the previous three years if the sum exceeds the family’s total income for the three years before the purchase. They are also obligated to provide information on the sources of funds utilized in such transactions.
According to the article, the new legislation will take effect 10 days after it is published. Its passage comes after parliament enacted legislation in February authorizing the Russian government to seek the seizure of unlawfully obtained wealth, including digital assets, from authorities.
The legal changes came after President Vladimir Putin’s request to scrutinize officials with cryptocurrency holdings last year. The information submitted by government personnel on their income declarations had to be verified by many ministries and the Central Bank of Russia (CBR).
The Russian federal government has started executing a new approach to tackle official corruption. In 2020, Russian President Vladimir Putin signed an order requiring government employees and candidates for public office to report their cryptocurrency holdings.
Russia has taken moves to regulate its crypto space in the face of escalating financial penalties over the conflict in Ukraine. While the CBR recommended a blanket crypto ban in January, the fight has altered the situation, with recent remarks in the Duma revealing Russia’s interest in utilizing cryptocurrency to reclaim its access to the global financial market.
The Ministry of Finance published new draught legislation titled “On Digital Currency” in February to legalise crypto activities in the country rather than establish rigorous regulations. The majority of other Russian institutions and authorities, including the federal government, now support the department’s regulatory stance, emphasising strong control.
