Russia to provide criminal liability for shadow turnover of crypto-currency

Russian Ministry of Internal Affairs proposes to introduce criminal liability for the shadow turnover of cryptocurrencies. The information was reported by Izvestia.

According to the appeal of Ministry of Internal Affairs it is recommended to provide punishment for the illegal purchase and sale of open source digital assets, such as Bitcoin or Ethereum. However it is not reported what specific punishment is planned to be introduced.

The Ministry of Finance in response to the appeal noted that it is necessary to provide legal status of the cryptocurrencies first. It is worth mentioning that the draft law “On Digital Financial Assets” has passed only the first reading in the State Duma. According to the document, digital assets are not a legal means of payment, but it provides for the possibility of exchanging tokens for fiat if the participants are identified and the transaction is conducted through the “exchange operator”.

The document will be further developed for the second reading. It was reported that, the concepts of “crypto-currency” and “digital money” would be removed from the document before the second reading. Officials are also considering the issue of establishing control over the exchange of digital money for fiat if the transaction amount exceeds 600 thousand rubles.

If the proposal of the Ministry of Internal Affairs is adopted, Russians may face imprisonment or large fines for illegal buying and selling cryptocurrences. Meanwhile, the Finance Ministry believes that it is too early to talk about any kind responsibility, because the legal regulation for the industry has not been created yet.


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