Russia to Reduce the Proposed Fines on Bitcoin Users

By November 11, 2014Bitcoin Business
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Russia to Reduce the Proposed Fines on Bitcoin Users
Russia to Reduce the Proposed Fines on Bitcoin Users

Though speculations are still ripe that as Ruble is losing its value in exchange market thanks to deteriorating Russian economy, and this can be a perfect situation for Bitcoin to emerge as an option, the latest news is that Russia’s Ministry of Finance has reduced the proposed fines both individual and institutional Bitcoin users.

The proposed fines were on the people for creating, issuing or promoting digital currencies under a draft bill that seeks to outlaw the use of so-called “money surrogates” like Bitcoin. According to the local media the updated bill decreases penalties for individuals, who under the latest version would only incur a maximum 50,000 ruble fine (roughly $1,050), down from 60,000 rubles ($1,314) in the previous iteration.

Earlier the last month, Russia’s Ministry of Finance revealed the full draft of their proposed legislation that showed the country’s intentions to ban Bitcoin by 2015. It was a major concern for a lot of people and at the same time it also surprised many as they wondered how the ban would be implemented.

However, from the latest provisions it looks an early signal that the proposed law will not be as strict as some had feared. Also, the latest revisions come despite the fact that lawmakers have yet to take into account public input on the bill. Nonetheless, none of arguments expressed in public discussion has been taken into account by the lawmakers.

The Penalty Will Discourage Bitcoiners

When the government came up with the idea to penalize Bitcoiners, the deputy Finance Minister Aleksey Moiseev claimed that he was following Europe’s lead. However, it’s also evident that no other country in Europe has taken drastic moves against Bitcoin like penalizing the users.

Though some governments in Europe showed their concerns, none of them came up with the idea to impose penalty on Bitcoin users. For instance, the central bank of England and some representatives from the government have even showed their happiness about the digital currency and how the country can benefit from the same.

Whatever the goal of the Russian government, it looks the Deputy Finance Minster was referring to the EU Banking Authority’s digital currency warnings on Bitcoin. These were issued earlier this year to warn the users against the potential risk involved in Bitcoin transactions or investments. It had then admitted that Bitcoin users have higher risks of losing their money.

To contact the reporter of this story: Deepak Tiwari at

The proposed fines were on the people for creating, issuing or promoting […]

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