Draft Criminalising Bitcoin’s Transactions Moved in Russia
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Draft Criminalising Bitcoin’s Transactions Moved in Russia

May 22, 2020      Zain Raza

New legislations are on the way in Russia which would be criminalising bitcoin’s transactions and other crypto activities in order to curb crypto in the country.  Russia’s local crypto publisher Forklog, a digital financial assets draft has been moved by the minister of economic department.

In the eyes of most, crypto in Russia is seen as a property although the legal definition is unclear yet.  The latest draft also categorizes them as such and talks about the prohibition of crypto in the country. If this law comes to life individuals and organisations would not be allowed any operations involving crypto in the country. They would not be able to pay for goods or services through it.

If an individual or an entity is involved in the issuing of virtual assets, the legal organization could be charged as high as 2 million rubles ($28,240) and individuals up to 500,000 rubles ($7,060).

The amendments also mention the violation of payment norms and in that case and the individual would have to pay an amount up to 20,000 ($2,820) and for legal entities, the fine could be set between anything from 100,000 rubles ($1,412) to 1 million rubles  ($14,120).

The drafts also include more severe punishment than just fines, the guilty parties involved would face imprisonment of seven years. The crypto properties would be confiscated by the government.

Criminalising Bitcoin’s Transactions A Bummer For Binance 

Criminalising bitcoin’s transactions comes when exchanges like Binance are trying to enter the Russian markets to enhance crypto adoption in the country.

While a few countries are taking measures to increase crypto adoption in the country by relaxing some regulations, countries like Russia, Iran and the Netherlands have adopted policies which crushes the crypto growth in their countries. Iran just recently announced that it will treat the crypto exchanges under the existing foreign exchange laws.

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Zain Raza
Zain Raza

Zain is a fervid fan of bitcoin and has been meticulously covering the field for a fair amount of time now. An aficionado of Spider man, Liverpool and Slim Shady.