on the crypto
Hard new rules to combat the illegal use of digital assets through fines or jails could soon become law in Russia.
Publish drafts of documents
The new bills that establish how Russia plans to regulate the cryptocurrency sector were sent to the country's parliament, the State Duma, earlier this week.
Although the official website where updates on the envisaged legislation are reported does not present any new notice in this regard, the two documents have been published in the OrderCom Telegram channel and have been confirmed as authentic by Russian media sources RBK.
The legislative proposals were reportedly written by think tank staff on the digital economy and the business accelerator Skolkovo.
A detailed regulation for cryptocurrencies
The first bill would regulate digital currencies in Russia. Specifically, it prohibits the issuance and operation of digital currencies in the nation. The distribution of information on these assets would also be prohibited.
Individuals and companies would not be allowed to accept digital currencies as a payment unless they were inherited, distributed to the debtors of a bankrupt company or confiscated following a court decision. People who own cryptocurrencies should report them to the tax agency, as well as provide information on how it was purchased.
High fines and prison for those who do not respect the law
The second draft would introduce a new article in the penal code by introducing penalties for illegal transactions with digital resources. If approved, the issuance of digital assets in Russia not registered in a register under development at the country's central bank would result in a fine to the company responsible for a maximum of two million rubles (one quotation from almost $ 28.000).
The same goes for companies that organize transactions with digital assets and cryptocurrencies without approval, while individuals individuals face a fine of up to $ 2,800.
The purchase of cryptocurrencies in cash or by bank transfer from a Russian bank would be subject to a fine of up to one million Russian rubles ($ 14.000) or up to seven years in prison, depending on the size of the agreement.
Similar punishments could also apply to those who accept cryptocurrencies for goods and services. If such an activity would generate "particularly large" profits or significant damage to citizens and the state, the new law would put the people involved behind bars for up to seven years, or even under forced labor.
Facilitating cryptocurrency purchases, if such transactions "somehow" caused significant harm "to the state or individuals or" a particularly high profit "for the operator, could lead to five years in prison.
Quotes from a central bank register suggest that legislators would be leaving some room for maneuver to some entities officially sanctioned for the issuance and use of digital assets, while most general operations would be banned.
According to the RBK report, Anatoly Aksakov, head of the Duma Committee for financial markets, confirmed the authenticity of the documents, but claimed that they have not been completed.