Media: Bank of Russia drafts bills to ban Bitcoin and impose fines up to 1 million rubles

The Bank of Russia has prepared draft laws to ban the issuance and circulation of ‘private digital currencies’ in Russia, according to ТАСС.

The regulator proposed fines for organizing the issuance or circulation of cryptocurrencies by individuals from 300 000 to 500 000 rubles, and for legal entities up to 1 million rubles. For accepting payments — up to 50 000 rubles and up to 1 million rubles, respectively, according to «РИА Новости». The bans apply to crypto assets issued both in Russia and abroad.

The Bank of Russia wants to prohibit banks and other financial institutions from owning cryptocurrencies and to restrict transfers to persons connected with the issuance and circulation of such assets.

In addition, the Bank of Russia seeks to consolidate powers to adjudicate offences by financial institutions that fail to comply with the prohibitions.

The Bank of Russia also drafted a ban on disseminating information about cryptocurrencies.

ForkLog sought comment from the Bank of Russia.

According to sources familiar with the situation, the regulator has sent its draft laws to the Ministry of Finance.

Experts told ForkLog that cryptocurrency investors would be forced to leave Russia if the central bank’s proposals are approved.

Earlier in January, the Bank of Russia released a report in which it called for a complete ban on the circulation and mining of cryptocurrencies in Russia.

The government, the State Duma and security agencies do not support the Bank of Russia’s position on cryptocurrencies. In the Ministry of Finance they said that the industry should be regulated, not banned, and presented their own concept. Its was approved by the government.

The Bank of Russia criticised the concept and continued to insist on the need to ban cryptocurrencies.

In the Ministry of Finance, they said that if there is no consensus with the Bank of Russia on market regulation, the ministry will submit to the government a package of draft laws with a table of disagreements.

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