The main proponents of cryptocurrency in Russia are opposed to the government’s strict approach to regulating the cryptocurrency industry.

The Committee on Blockchain Technologies and Cryptoeconomics, which includes the heads of major crypto exchanges Binance and OKEx, has asked the state to relax rules that could harm the crypto industry.

The committee told Cointelegraph on December 9 that members had sent notes to the Treasury Department regarding a new bill to tax digital currencies such as Bitcoin (BTC).

Lobbyists have proposed a number of measures, such as eliminating criminal responsibility for failures to report cryptocurrency taxes and reducing administrative penalties for violations related to cryptocurrency transactions.

The group also asked the government not to grant the Federal Tax Service the right to set rates in the cryptocurrency market for ex-post taxes, as this right could be abused.

According to committee members, the adoption of Russian rules on cryptocurrencies, in their current state, could trigger a wave of capital outflows from the country into jurisdictions with more favorable rules.

Gleb Kostarev, director of Binance Russia and a member of the committee, said that when developing and implementing the regulatory framework, it is essential to use the experience and knowledge of global cryptocurrency companies.

As previously reported, the Russian government is officially planning to ban cryptocurrency payments in January 2021. Local authorities also want them to be sentenced to prison terms for failing to report annual cryptocurrency transactions in excess of $ 600,000.

Source: CoinTelegraph