Russian authorities submit draft bill that would effectively ban bitcoin

Regulation | January 12, 2016 By:

Russian lawmakers submitted a new draft bill to the country’s legislative assembly Duma in December that would effectively ban all forms of virtual currency within the Russian Federation.

Under the proposed legislation, the creation of all forms of “money surrogates” and their dissemination and promotion, will be considered a crime punishable by administrative fines. Even circulating information regarding the creation of digital currency software will be considered a crime.

There are several clauses that would make many uses of digital currencies liable for severe “administrative penalties”, which would range from 20,000 rubles to a maximum of 5 million rubles, along with confiscation of the items responsible for the violation.

The level of fine would depend on the type of violation and the status of the party responsible (individual, entrepreneur, Russian official and legal entity).