The Russian government is worried about the illegal use of crypto in the country, and is considering tightening the rules surrounding its usage. According to a local news report, the country’s parliament may soon pass new laws that will impose a minimum fine of $7,000 or up to 7 years of imprisonment on crypto investors/traders/miners.
The report has it that the Russian government is working on legislation that some believe will ensure a total ban on crypto in the country. The head of the Russian central bank revealed in an interview that the latest proposal by the county’s lawmakers clarify crypto as property and proposed a complete ban on their issuance and circulation within the country.
A draft of the law has it that, individuals or organizations in the country would be prohibited from carrying out any operations in cryptocurrencies. This will include running a crypto exchange or a mining company. Furthermore, they will even be forbidden to conduct crypto transactions, including buying BTC using accounts in local banks.
The draft proposed 500,000 Rubles ($7,000) in fine to any individual who performs any of the aforementioned. Companies who will also involve in illegal issuance and circulation of digital assets will be fined up to 2 million Rubles. Alongside these heavy fines, the authorities can also put offenders in prison for up to 7 years, depending on the amount of crypto involved.
Yuri Pripachkin, Head of the Russian Association of Cryptoeconomics and Blockchain (RACIB), is of the view that this law, when passed, would mean a total ban on crypto in the country. According to him, the law will drive Russian-based crypto companies to other former Soviet countries such as Ukraine, Uzbekistan and Belarus.