Alert: Russia to Impose Fine on Cryptocurrency Mining

The State Duma, Russia’s parliament may possibly impose an administrative responsibility on cryptocurrency mining by June’s end. Specifically, the law will impact crypto assets that are created on open blockchains such as Bitcoin and Ethereum, reports TASS on June 7, 2019.

Anatoly Aksakov Informs of Possible Ban on Crypto Mining in Russia

Per the report, Anatoly Aksakov, the chairman of the State Duma Committee on the Financial Market informed TASS that the State Duma may impose an administrative responsibility on cryptocurrencies that are created with the use of open blockchains.

Aksakov also said operations carried out with cryptocurrencies which do not align with Russia’s legislation will be considered illegitimate and as such, prohibited. These operations will include cryptocurrency mining, circulation, organizing issuance, and the creation of exchange points for these assets. As a result, anyone found wanting will be fined.

Possibility to Own Bitcoin Despite Ban

On the other hand, the Chairman outlined that even though cryptocurrency mining may be banned in Russia, a person can still own Bitcoin only if the asset was not acquired in Russia but under foreign law at foreign points of sale and exchange.

He also pointed out that the mass adoption of crypto assets is accumulating and it will allow Bitcoin to become popular again. Furthermore, the major problem of blockchain is its speed and as soon as the problem is tackled, Bitcoin will gain massive adoption.

The news is, however, coming at a time when India also intends to ban cryptocurrency. On June 9, 2019, Coinnouce informed that the South Asian country has proposed a draft bill that will ban people from holding or trading cryptocurrencies. A 10-year jail sentence may also be incurred by offenders.

Joyce Lang

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