Russian Lawmakers Propose Bill That Puts A Total Ban On Crypto; Up to 7 Years in Prison

Russia's Duma and Ministry of economic development present wholly different attitudes towards crypto, leaving many in the industry with headache-inducing confusion.

  • The law is getting tougher on cryptocurrencies in Russia as lawmakers propose a draconian law to curb the use of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) within the country.

According to the Russian publication, RT, members of the State Duma – Russia’s parliament – are proposing a 500,000-2 million rubles fine, or five to seven years imprisonment for the illicit use of cryptocurrencies in Russia.

While the law won't place a blanket ban on cryptocurrencies, some analysts say this move amounts to a total ban on crypto.

If the law passes, then crypto use in Russia; from activities like crypto mining, running a crypto exchange, trading, and transacting fiat-to-crypto through any Russian financial institution will be illegal.

According to the publication, the amendments on the financial assets bill proposed fines from 50,000 rubles ($706) to 500,000 rubles ($7,000) for individuals that earn a “large income” from crypto. The bill further proposes a 2 million Rubles ($28,240) fine on legal entities that help in these illicit transactions, transfers and issuance of cryptocurrencies in Russia.

Notwithstanding, users who use crypto payment channels will be liable to a fine of 20,000 rubles ($280) up to 200,000 rubles ($2,800). Legal entities accepting crypto transactions will be fined from 100,000 rubles ($1,400) up to 1 million rubles ($14,000).

The Confused State of Russian Crypto Users

Amidst the recent change of heart from the Russian government on cryptocurrency operations, many investors remain perplexed about what direction the Russian government is taking.

Recently, the Bank of Russia (BoR) released a revised bill on the regulation of digital assets across the country, banning the issuance of crypto due to the inherent risks of the industry.

“We believe there are big risks in legalizing the operations of the cryptocurrencies. From the standpoint of financial stability, money-laundering prevention and consumer protection.” – Alex Guznov, BoR head of legal office speaking on the revised crypto bill, March 2019.

However, the Russian Federal Ministry of Economic Development recently proposed new legislation to legalize crypto, as well as blockchain-based initiatives through a special regulatory framework.

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Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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