Russia backtracks on blanket Bitcoin ban

Russia backtracks on blanket Bitcoin ban

- in All News, Cryptocurrencies, Regulation
bitcoins

Months after the first reports on Russia’s plans to impose a blanket ban on the use of Bitcoin and all other cryptocurrenices in the country surfaced, it appears now the country’s government is having second thoughts.

According to a report of the TASS Russian news agency, the deputy-finance minister Alexei Moiseev said the ministry will not be insisting on a full ban of Bitcoin.

“The bill is ready, but we are not going to rush it and most notably, will be amending it as we go,” Moiseev told journalists and added he was planning to hold a series of meetings with experts to consider once more what is to be done. “Perhaps, considering the fast technological developments, a blanket ban would not be very appropriate.”

In Moiseev’s words, the government will nevertheless take strict measures to limit the use of Bitcoin for illegal transactions and money laundering. “Naturally, we must not forget the use of Bitcoin for financing of terrorism,” he said.

The deputy-finance minister, however, said that either way the law will have to protect the position of the Bank of Russia as a sole issuing institution.

“We will be thinking some more, we will be actively communicating with experts,” Moiseev said.

According to current finance ministry proposals, still to be discussed in Russia’s parliament, the use of Bitcoin by legal entities would carry a 7-year imprisonment for the managers and executives of the companies and a fine of between 1 and 2.5 million rubles. For private citizens the law provides 4 years in prison and a fine of RUB 500 000 (USD 7680). The intended fine for Bitcoin miners is RUB 1 million imprisonment of up to 6 years.

Meanwhile, in Moscow opened the first offline Bitcoin exchange.

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