Lawmakers propose laws that seek to criminalize the use of crypto in Russia.

The Russian government is moving to criminalize the use of cryptocurrencies by proposing new legislation controlling the digital currencies.

According to the Forklog report, the Ministry of Economic Development in Russia 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 accurately defined, as many institutions see them as property. The latest proposal by the lawmakers clarified crypto as property and proposed a complete ban on their issuance and circulation within the country. The head of central bank revealed it in an interview

 

The proposed law criminalizes the use of crypto. 

If passed as laws, any individual or organization would be prohibited from carrying out any operations in digital currencies. This will include payments in cryptocurrencies for goods or services, or exchange of digital currencies. The amendments also proposed 50,000 rubles to 500,000 rubles in fine to any individual and a penalty of up to 2 million rubles to companies for organizing illegal circulation in cryptocurrencies or involvement in the issuance of digital assets. 

And for violating the payment norms, the individuals will be fined with 20,000 rubles to 200,000 rubles, and for legal entities, this fine is from 100,000 rubles to 1 million rubles. Along with these heavy fines, the Russian authorities can also put the involved parties under imprisonment for up to 7 years, depending on the amount of crypto involved. 

 

Russian President believes it is not possible for countries to have CBDC. 

As reported earlier, Russian President Vladimir Putin said that it is not practical for countries to issue their own cryptocurrencies as they don’t work like that. The President of Russia noted that cryptocurrencies function beyond borders, so it not possible for any country to have its own cryptocurrency. The President was asked about whether Russia will soon have its national cryptocurrency or not, he replied that it is not possible for Russia or any other country to have its cryptocurrency as they work beyond borders. Earlier, the central bank of Russia had said that it would support any legislation that bans the use of crypto in the country. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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