State Duma’s floor has been hit by proposed legislation seeking disclosure of crypto spending and holding by the candidates of future elections in Russia. Election nomination papers will require providing crypto information of the candidate as well as of his or her dependent family members, subject to a pre-determined price cap.
Russia’s lower house, i.e. State Duma, has been provided with new legislation for its consideration. It was reported that the new legislation relates to future elections and crypto.
The draft of the Bill has been presented to the leader of the State Duma for debate and discussion. However, the proposed legislation has been duly appreciated and adopted at first glance. The law seeks to provide crypto spending and holding information by the intended persons who wish to contest future elections. In addition, the eligible candidates will be required to mention in their nomination papers how much they have invested in crypto. Furthermore, how much crypto assets are in their possession, will also need to be disclosed without any exception.
The proposed bill has been duly prepared by the concerned Government department and officials. Amendments have been recommended for onward incorporation into the law relating to digital assets and currencies. As per the new legislation candidates will be further required to give details of digital assets and currencies spent or held by their dependent family members. For instance, it is mandatory to provide details of the spouse and children if any crypto is being spent by them or in their names.
However, the application of the new law will only become applicable if the collective amount of spending goes above the Candidate’s net income earned in three years. This total income of the candidate will also include the incomes of any of the members of the candidate’s dependents. Meanwhile, the politicians will need to further ensure that they disclose sources of funds used for acquiring digital assets and currencies.
Apparently, amendments will need to be made in the two laws concerning Russian Presidential and State Duma’s deputies’ elections. Whilst amendments are expected in due course, however, whenever the next elections are going to take place in Russia, the law will become applicable automatically.
The present law is in continuation with the earlier law that was signed by Vladimir Putin in December 2020. As per that law, government officials were required to make full disclosure of their crypto holdings to the relevant authorities. For submission of the required information, a deadline of June 2021 was also given. Currently, the Russian Government’s officials are in the process of collecting the information required for onward submission to the concerned authorities.
In case of non-disclosure of the crypto holding, orders entailing suspension of the officials may be passed including the imposition of fines.