Russian Ministry of Finance propose 7-year jail sentence for bitcoin use

Crime | March 11, 2016 By:

The Russian Ministry of Finance has prepared stricter amendment to the Criminal Code that establishes penalties for release of money substitutes.

The latest amendment, prepared this month, March 2016, lays out the new terms for punishing those who engage in bitcoin trade or mining activities.

According to the new amendments:

  • Persons issuing money substitutes could now face a fine up to 500,000 rubles or the salary or other income of the convicted for a period of up to 3 years, or imprisonment for up to 4 years.
  • Organized groups, for the same offense, are punishable by a fine of 500,000 rubles to 1 million rubles or the salary or other income for a period of 2 to 4 years, or imprisonment for up to 6 years.
  • Top managers of a financial institutions (bank, insurance company, professional participants of the securities market, pension funds, mutual fund management companies and private pension funds, MFI, etc.) face up to 7 years of imprisonment with deprivation of the right to hold certain positions or engage in certain activities for up to 3 years or a fine of 1 million rubles to 2.5 million rubles or the salary or other income for a period of 2 to 4 years.

The chief concern of the Finance Ministry is the possible use of money surrogates like bitcoin in illegal activities such as money laundering.