It sounds like crypto is legal in Russia, but it's banned in fact. I meant that they won't be able to use Bitcoin as a payment method soon. Russian crypto law is associated with a phrase "To kill two birds with one stone".
P.s. Will holders with declared wallets be able to use bitcoin mixers?

At the very least they are trying their best to make a fair and just regulation that will benefit both sides. If the measure the Russian Government makes sure that money laundering will be possible then I think that it is a good thing after all. I too wouldn't want cryptocurrency to be associated with illicit activities, the only problem here is that there are a lot of cryptocurrency out there and I hope that the regulation covers them too

in any government in any country there are always some extremists in the different roles within government body that make extreme statements about everything (not just bitcoin). in 99% of the cases it is just their extremism and not what the country would pass as a law.

as for tax evasion, that's not new. the law existed before and will exist in the future too. anyone evading taxes is going to be heavily prosecuted and fined whether it is bitcoin related or not.

I think the The issue would be on how much people living would be declaring. I know it will always depend on the amount they are holding. I'm not really up for that law because it could easily be transferred in another wallet and say they have nothing to do with it. Most of the people would probably just declare up to the limit or something.

With that laws towards bitcoin, I think Russia is really against it and they are doing anything just to make cryptocurrency illegal in their country.

If they are doing those things like that, it is pretty obvious that they are not that happy about cryptocurrency industry.

Bitcoin and any other cryptocurrency adoption is really hard to reach, it is not the people who are the problem, but the government and their mindset towards it.

What if the declared crypto wallet was hacked or compromised? And was being used for unauthorized transfers to a chain of unknown wallets? How can the Russia government handle this situation? Will they keep the original wallet owner accountable despite it’s hacked? And of course, it’s hard for them to keep track because every person can create multiple wallet addresses and had many strategies to avoid government rules or something.

And what will be their legal definition of a "wallet"? If they define it to encompass web wallets, they still leave all software and hardware wallets unaccounted for. Definitions that seem intuitive to us are convoluted from a legal point of view.

Even if they classify it as all the common ways of making a wallet, i.e. exchange, web wallet, hardware wallet, software wallets with a wallet file, there are more exotic wallet types that don't exactly fit a legal definition of the word wallet such as storing all your bitcoin in a single private key.

Someone can also strore everything in different address or derivation paths in the same wallet file to exploit a loophole in this law to classify your holdings as just one wallet, so you pay one fee.

There's also wallet types like paper wallets and brainwallets that are nearly impossible to prove the legal existance of.

And what does the law dictate if you have a multisig wallet with someone outside of Russia? Will they classify it as yours, or a foriegner's wallet? Ditto for bitcoin stored in locktime transactions, can they classify it as yours although you can't spend it?

I doubt they will find legal answers to all these questions, so what's most likely going to happen is that Russians will still find a way to use bitcoin legally.

This proposed law helps the government to track crypto-currency user's in their country. If the Russian government entirely bans crypto, they will use this list to track who still use crypto.
But at least in this proposed law allows a crypto-currency in their country. Users need to submit corresponding support to the government, which is a pain to us crypto-user.

Well, this will only make people go even more underground, seek more privacy increasing options, go more P2P, and more decentralized alternatives. At the same time, it'll push developers into creating even more solutions, or bolster innovation work already ongoing. So, in the end, better for the ecosystem as a whole. Necessity is the mother of invention, after all.