Russian Court Penalizes Newspaper for Advertising Cryptocurrency Mining
The court decided an ad run by a Russian newspaper was illegally promoting a cryptocurrency mining operation, resulting in a fine of 760 USD for the publication. Apparent regulations where broken when a local paper in the Republic of Tatarstan placed cryptocurrency advertisements inside its pages. The penalties were processed by the ACA (Eleventh Arbitration Court of Appeal) after they found the paper guilty of illegal advertising.
A state-run committee investigated the matter, thereby determining the ad be placed, run and designed against the countries current regulatory commissions on cryptocurrencies. It was a simple advertisement that made no promises of income; it only said interested parties could invest into Bitcoin, ZCash, and Ethereum (it also briefly touched on mining) – after which it gave a phone number for people so that people could contact the responsible party. Russia's primary reason for the fine came from the countries implemented Anti-Monopoly Service backed by Russia's Central Bank.
Russia's government is ok with cryptocurrency consulting services, not ones of a financial one. It is because of that reason the country decided to fine Richard Timurovich Blumchen, who proved to be responsible for running the ad. Even though he was the owner of the ad, the paper was forced to pay the fine because of a legal loophole not previously seen.
It is an unfortunate event, as the country is industriously working at bringing cryptocurrency to the mainstream public. Before cryptocurrency supporters can do so, they must meet all regulations set in place by the countries government. An event like the one in this article only slows down the rate and speed at which investors can pass all regulations to get cryptocurrency accepted.
Not only is the event unwanted, but so are the numerous questions it brings up regarding small time cryptocurrency investors who operate under the radar. The problem is gaining attention from Russia's Central Bank who wants to see any cryptocurrency related matters handled in court.
Several bans on cryptocurrency have been instilled to regulate operations inside the country. Banks can seize cryptocurrency as property for delinquent loan payments or account reasons. Moreover, in St. Petersburg Russia, courts have been going back in forth with cryptocurrency advertisements. Making them illegal one day and allowing them the next, it's a confusing time for Russian investors, who are frustrated.
If you asked a group of politicians in the country about their perspective on cryptocurrency, you would likely get mixed remarks. Some believe it is a viable option for currency that needs to be regulated; others think crypto should be banned entirely. According to the Russian people who are somewhat familiar with it though, it would seem they want to keep cryptocurrencies like Bitcoin around.
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