Russian Parliament Proposed Bills to Deal with Individuals and Companies Involve in Illegal Crypto Activities

The crypto community in Russia will soon face strict crypto regulations as new amendment draft bill will impose fine to those who involve in illegal crypto activities. However, it is still unconfirmed whether it will come into its practical shape or not.

The local media outlet, RBC, reported that the Russia’s parliament, the State Duma, accepted the new draft bill dealing with illegal activities related to cryptocurrency. According to the report, the bills are proposed after the amendment in bill titled “Code of Administrative Offenses, Criminal Code and Art. 51 of the Code of Criminal Procedure.”

Fines and Imprisonment

Per the new legal document, the companies as well as individuals will subject to fine and jail imprisonment if they engage in any crypto illegal activity. The issuance of crypto tokens is also forbidden in the country.

The first amendment bill reveals the authorities will impose fine of 2 million rubles (almost $28,000) to companies and 500,000 rubles ($7,000) to individuals if they involve in the usage of crypto as payment medium, issuance of cryptocurrency, or in the circulation of cryptocurrency. Moreover, if both companies and individuals use digital currency as a payment for services or goods, they will pay fine from $6,000 to $14,000. The operation of Bitcoin mining within the territory of Russia is punishable and is subject to fines.

The report also stated:

“It is proposed that criminal offenses be attributed to the same acts as administrative ones if they caused major or especially large damage to citizens, organizations or the state or led to the extraction of large or especially large income. A penalty is also added for the purchase of digital currency in Russia for cash or by transferring funds to accounts opened with Russian banks.”

The report also explained that the legitimacy of the draft bills is also testified by the internal sources. The Chairman of the State Duma’s Financial Markets Committee, Anatoly Aksakov, claimed that these legal documents are not the final versions which means that the authorities can amend it further.