Russia Seeks to Criminalize Crypto Usage with Fines, Imprisonments

The Russian government is moving to criminalize Bitcoin transactions by proposing new legislation controlling the digital currencies.

Reported by local crypto publication Forklog, the Ministry of Economic Development has moved several bills in the State Duma, including an updated draft for digital financial assets.

The proposed laws primarily touch the administrative and criminal liability for violation of rules involved in the crypto transactions.

Though the categorization of digital currencies in Russia is not exactly clear, many institutions see them as property.

The latest proposal also clarified them as property and proposed prohibition on their issuance and circulation within the Russian territory.

If enforced as laws, this will prohibit any individual or organization to carry out any operations in digital currencies. This will include Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term for goods or services, or exchange of digital currencies.

Heavy fines and prison sentences

The amendments also proposed 50,000 rubles (around $706) to 500,000 rubles ($7,060) fine to any individual and a penalty of up to 2 million rubles ($28,240) to legal entities for organizing illegal circulation in digital currencies or involvement in the issuance of digital assets.

For violating the payments norms, the individuals will be penalized with 20,000 rubles (almost $282) to 200,000 ($2,820) rubles and for legal entities this fine is from 100,000 ($1,412) rubles to 1 million rubles ($14,120).

In addition to the large fines, the authorities can also put the involved parties under imprisonment for up to 7 years, depending on the amount of involved digital currencies and the damage to the country's financial system.

In all the cases the involved cryptocurrencies will be confiscated by the authorities.

The only way Russian citizens or entities can hold cryptocurrencies is by declaring it to the authorities.

This came when major cryptocurrency exchanges including Binance are entering the Russian market, calling a progressive stance of the country’s leaders towards crypto.