Russia and Bitcoin will, most likely, never get along, and there is nothing wrong with that. Any self-respecting country in the world is keeping an open mind towards Fintech and digital currency, which is not on the agenda for Russian officials just yet. What is worrying, however, is the new legislative draft which makes Bitcoin illegal in the country, as well as aims to punish digital currency companies even harder than before.
Also read: First Global Credit Announces Yet Another Bitcoin Trading Competition Enforcing Stricter Penalties For Bitcoin usage
Although it is up to government officials of every individual country to deem Bitcoin legal or not, there are very few regions where digital currency is officially considered illegal . Russia will soon be added to the list, though, as the Ministry of Finance has proposed a new draft that will officially label Bitcoin as illegal.
But that is not all the Ministry plans to do, as the draft includes various proposals to impose new penalties on companies dealing with digital currency. A fine between three and five million Ruble will be imposed upon companies, although there is an alternative punishment in the form of a 90-day clause during which business operations are prohibited.
Business owners – especially those working in the banking, insurance, and other financial sectors – dealing with Bitcoin in some form can face a jail sentence of up to seven years. Moreover, they would be prohibited from securing particular jobs in the financial world for the next three years.
As far as Russian government officials are concerned, the Ruble is the only legal currency to be used in the country. Moreover, the Central Bank is the only legal entity allowed to issue currency in the country, regardless of whether this money comes in paper or electronic form. […]
