Ministry of Finance has prepared a bill to completely ban Bitcoins

The Ministry of Finance has developed amendments to the law “On the Central Bank”, which prohibit the production and circulation of cryptocurrencies in Russia. Moreover, the Ministry of Finance proposes amendments to the Administrative Code in order to toughen penalties for violating companies. They face a fine of 3-5 million rubles or administrative suspension of activity for up to 90 days.

After inter-agency coordination, the proposal will be submitted for consideration by the State Duma. The newspaper "Izvestia" reports that the Ministry of Economic Development, Rosfinmonitoring, lawyers and bankers have already supported him.

So what is proposed to change?

Article 27 of the Law "On the Central Bank" now:

The official monetary unit (currency) of the Russian Federation is the ruble. One ruble consists of 100 kopecks. The introduction in the territory of the Russian Federation of other monetary units and the issuance of monetary substitutes are prohibited.

Article 27 of the Law on the Central Bank, in a new statement from the Ministry of Finance:

The official monetary unit (currency) of the Russian Federation is the ruble. One ruble consists of 100 kopecks, - follows from Article 27 of the Law on the Central Bank specified by the Ministry of Finance. - Introduction in the territory of the Russian Federation of other monetary units and production (release) of objects of property rights, including in electronic form, used as a means of payment and (or) exchange for cash and not directly provided for by federal law (hereinafter referred to as money substitutes) as well as conducting transactions using cash surrogates are prohibited. Objects of property rights that arise as a result of fulfillment by the parties of their obligations under civil law contracts and are used to stimulate the acquisition of goods, works, and services are not recognized as money substitutes.

Thus, the dispute over whether cryptocurrency money surrogates becomes inappropriate. The new law expressly prohibits cryptocurrency.

Punishment for the production and circulation of cryptocurrency for business The Ministry of Finance proposes to prescribe in the new article 15.16.1 of the Administrative Code.

At the same time, a bill from the Ministry of Finance passes the interdepartmental coordination, introducing criminal liability for bitcoins for ordinary citizens.

For release, purchase and sale of money substitutes, violators are threatened with a fine of up to 500 thousand rubles or a prison term of up to 4 years. For members of an organized group - a fine of 500 thousand to 1 million rubles, or imprisonment for up to 6 years. For top managers of banks, insurance companies and other financial organizations and professional participants of the securities market, a fine is from 1 million to 2.5 million rubles, and the maximum penalty is 7 years of imprisonment with deprivation of the right to hold certain positions / engage in certain activities for up to three years old.