According to the Russian government, cryptocurrencies trading is about to become a crime, and traders could end up in prison. This is part of a law bill through which Russia wants to regulate cryptocurrencies.
New cryptocurrency law in Russia
The draft law will cover both: the regulation of crypto emissions and trading in Russia. The dissemination of information about such activities will also be prohibited.
Local source of information - Russia Today, have reported that Russia fears about the illegal use of cryptocurrencies and wants to prevent it. The new rules will be punished with $7,000 or even 7 years in prison for not complying with them.
The draft law also stipulates that not only cryptocurrencies trading but also ownership of a stock exchange, mining company or buying Bitcoin through local bank accounts will be prohibited.
What will be the penalty ?
The penalty for cryptocurrencies trading in Russia will start from 5,000 roubles ($7,000) to as much as 2 million roubles. For traders who will use cryptocurrencies for illegal activities (e.g. money laundering) or earn large amounts of money, there will be even 7 years of imprisonment or several years of forced labour.
According to the head of the Russian Association of Cryptoeconomics and Blockchain (RACIB), Yuri Pripachkin, once these laws become established, they automatically ban cryptocurrency in the whole country.
The result will probably force many businesses to relocate to neighbouring countries such as Ukraine, Poland and Belarus, but in Russia there is access to cheap electricity in Siberia, which is perfect for Bitcoin mining.