logo

Crypto trading in Russia soon to be penalized with 7 years jail term

Crypto trading in Russia

Crypto trading in Russia, according to the country’s government, would be an offense where the culprit goes to jail. This is part of draft bills setting out how Russia should regulate cryptocurrencies that were sent to the country’s parliament, the State Duma, earlier this week.

The draft bill would regulate cryptos in the country, i.e., prohibit issuance and operation digital currencies in the country. Distributing information about such activities also would be banned.

Local news sources in Russia, ‘Russia Today,’ reported that the country’s parliament is worried about how cryptos are being used for illegals and are trying to prevent such. They reported that very soon, the country’s government would begin imposing fine ($7,000) or culprits will serve seven years jail term for crypto trading in Russia.

Other content of ongoing legislation

Certain Russians lawmakers are of the opinion that illegally using the digital assets in the country be banned as processes are ongoing for drafting legislation that would introduce criminal liability for using digital financial assets and currencies.

The draft law also contains that not only crypto trading in Russia is illegal, but owning an exchange firm, a mining company, or purchasing Bitcoin with local bank accounts are all forbidden.

Proposed fine for crypto trading in Russia

The fine for trading crypto in the European country begins at 5,000 Rubles ($7,000) to as much as 2 million Rubbles. However, making a huge profit from crypto trading (illegally) or money laundering would be subjected to several years of forced labor or seven years in prison.

According to the head of the Russian Association of Cryptoeconomics and Blockchain (RACIB), Yuri Pripachkin, once these legislations are passed, it becomes an automatic ban on cryptocurrencies in the country.

It would also lead to crypto firms in Russia relocate their businesses to other neighboring countries like Ukraine, Belarus, etc. however, Russia has vast sources of cheap energy in Siberia that could be used for BTC mining.

 

Muhaimin Olowoporoku

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

Related News

Hot Stories

DeFiChain’s DFI Token Starts Trading on the Gate.io Exchange
All you need to know about Soulbound Tokens (SBT)
Alchemy Pay Price Prediction 2022-2031: Is ACH a Good Investment?
Polkadot price analysis: DOT/USD continues bullish flight as price touches $6.35
What's at the Heart of the 3air Platform?

Follow Us

Industry News

All you need to know about Soulbound Tokens (SBT)
What's at the Heart of the 3air Platform?
Can Russia evade sanctions with international crypto settlements?
Why is Do Kwon on a run if he did not do anything wrong?
Kenyan Central Bank reiterates stance on crypto