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Cryptocurrencies May Be Banned In Russia

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Over the past two years, authorities in Russia have repeatedly tried to adopt a law on the regulation of relations in the crypto industry. 

Russia cryptocurency

The legalization of the crypto space was always postponed for various reasons. Recently, the head of the State Duma Committee on the Financial Market, Anatoly Aksakov, said that as part of the fight against the coronavirus pandemic, the bill on digital assets will not be adopted.

In the spring of this year, Russia planned to submit a bill for the definition of digital assets, assignment of legal status to them, determination of their use in the economy, and the formation of an approach to taxation. This week it was reported that State Duma deputies decided to abandon the legalization of digital currencies. But a package of bills on the introduction of liability for operations with such assets was prepared.

The Bill was submitted to the Government for Consideration

Russia cryptocurrency

Russian deputies have prepared bills that introduce administrative and criminal liability for violations of the use of digital financial assets, digital currency, and digital rights. The bill has already been submitted to the government. The document says about the need for a complete ban on operations with cryptocurrencies, except certain cases prescribed in special regulations.

Legislators propose introducing fines for individuals and legal entities that have a cryptocurrency business, for example, a crypto exchange or a mining farm. For citizens, fines of up to 500,000 rubles are provided for operations with Bitcoin and other cryptos. For officials, fines have been increased to two million rubles.

Law enforcement agencies can even get the right to send token holders to prison for up to seven years. It is also proposed for five years to send people to forced labor. The head of the Duma committee on the financial market Anatoly Aksakov confirmed the fact of sending two documents on amendments to the Code of Administrative Offenses and the Criminal Code to the Ministry of Economic Development.

According to the proposed documents, now people can face administrative and criminal liability for the use of cryptocurrencies.

More About Administrative Liability

  • For individuals, a fine of 50 to 500 thousand rubles per turnover, transactions, services for the production and use of sites, and technical equipment registered and hosted in Russia.
  • For legal entities, for the same violations, a fine from 200 thousand to 1 million rubles. Officials – from 100 thousand to 1 million rubles. Or disqualification for a period of six months to one year;
  • In the case of using digital currencies as a payment for goods or services provided, confiscation of assets is threatened, as well as a fine from 20 thousand to 200 thousand rubles for individuals. From 50 to 400 thousand rubles – for officials and from 100 thousand to 1 million rubles – for legal entities.

More About Criminal Liability

It is proposed that criminal offenses include the same acts as administrative ones if they caused major or especially large damage to citizens, organizations, or the state. Or led to the extraction of large or especially large income. A penalty is also added for the purchase of digital currency in Russia for cash or by transferring funds to accounts opened with Russian banks.

  • The violator faces a fine from 500 thousand to 1 million rubles. or in the amount of his income from a year to two years. Or imprisonment of up to four years with a fine of up to 500 thousand rubles or in the amount of income up to one year.
  • It is proposed to punish with forced labor up to five years for extra-large damage or extra-large income. Or imprisonment up to seven years with a fine of up to 1 million rubles or in the amount of the convict’s income for a period of up to five years.

The amendments to the Code of Administrative Offenses and the Criminal Code of the Russian Federation contain a complete ban on cryptocurrencies in Russia, including cryptocurrency mining and their subsequent circulation, ICO, etc.

Anatoly Aksakov has already confirmed that such a bill has indeed been developed, but this is only the initial version of the document. The government has not yet commented on the information received.

Representatives of the crypto business spoke out extremely negatively about the authorities’ intention to increase pressure on the industry. Many companies have already announced that they will leave Russia if such a document is adopted.

 

Read more about cryptocurrencies in Russia here…

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