Russia adopted its cryptocurrency constabulary in January, but this legislation does not provide a directly answer to some questions, including how local officials should deal with their crypto holdings. In that location are at least 2 other legal initiatives requiring Russian public officials to declare or even go rid of their cryptocurrency holdings entirely in 2021.

On December. 10, 2020, Russian President Vladimir Putin signed a decree obliging some public officials to disclose their crypto holdings by June thirty. The decree was adopted as function of the country'south law "On Digital Financial Avails," or DFA, which was fabricated effective on Jan. 1.

Co-ordinate to the decree, Russian officials or individuals seeking to agree public office must disclose their digital avails, every bit well as those of their spouse and children. The legislation refers to a full general scope of the official establishment, seeking to ensure that the authorities is every bit compliant with the local fiscal declaration rules as ordinary citizens already are.

But there is as well some other regulation that prohibits sure Russian officials from owning any cryptocurrency, in line with the state'south anti-corruption measures. On Dec. 28, 2020, the Russian Ministry of Labour and Social Protection published an informational letter of the alphabet reminding some officials that they are obligated to liquidate their digital fiscal avails and any digital currencies past April i, regardless of the state of issuance.

This restriction specifically refers to individuals listed in Part 1 of Commodity 2 of the Russian Federal Law from May 7, 2013 No. 79-FL, which prohibits sure categories of persons to shop their funds abroad also as use foreign financial instruments. The listing includes a wide number of cardinal public positions, including running and deputy positions in public part, the board of directors of the Russian central depository financial institution, public corporations owned by the Russian Federation, heads of district administrations and several others.

In the letter, the ministry mentioned that other categories of public officials are non subject to these restrictions, though they still need to disclose their digital assets in line with a prescript signed by Putin.

While Russian authorities go on introducing new crypto-related rules for public officials, it'due south not immediately clear how they volition monitor compliance from a technological standpoint. Artem Grigoriev, caput of the research lab at the Russian Association of Cryptocurrency and Blockchain, told Cointelegraph:

"In that location is still no constabulary on the circulation of cryptocurrency. The authors of this initiative probably have their own vision about the implementation of these rules. Do will bear witness."

Maria Stankevich, a member of the Russian Committee on Blockchain Technologies and Cryptoeconomics, also questioned the technological and legal feasibility of implementing the rules:

"The restrictions for the certain groups of the institution for possessing the digital currency is actually a logical footstep in the attempts to finish corruption. [...] This is a clear signal for all the officials that the government now has another lever to show its power when needed. However, the main question is how they will monitor information technology, as there is no such law or process."