The Russian parliament has filed a bill that imposes financial sanctions on those who unlawfully trade or issue digital assets. This legislation was submitted by the author of a draft law that prohibits their use for payment.
Russian Platforms Targeted by New Bill for Trading and Issuing Digital Currencies Outside of Law
A bill submitted recently to the State Duma, Russia’s lower house, contained harsh penalties for entities or persons illegally issuing financial digital assets (DFAs).
According to Forklog’s crypto news outlet, penalties would be applied to companies not registered by the state as investors platform or exchange operator operators if this legislation passes.
The fines range from a maximum of 5,000 Russian rubles (around $90) for individuals and 30,000 ($550) for officials, to between 700,000 – 1,000,000 rubles (over $18,000) for legal entities, the report details. Companies that don’t comply with digital rights regulations (tokens), could be subject to similar sanctions, which can reach 700,000 rubles (almost 13,000).
Anatoly Ashakov, chair of the Financial Market Committee in Parliament, is behind this law. The high-ranking deputy has been involved in the ongoing efforts to adopt a comprehensive legal framework for Russia’s crypto sector. At the moment, the industry is only partially regulated by the law “On Digital Financial Assets,” which went into force in January, 2021.
Aksakov is also responsible for another cryptocurrency-related bill, filed earlier this month. It aims at banning payments to DFAs in Russia. Although institutions in Moscow continue to debate the future regulation of cryptocurrencies, officials in Moscow have reached a consensus that the ruble should be the sole legal currency in the country.
In the face of increasing financial sanctions, a proposal to permit crypto payments for small-scale business transactions in foreign countries has also gained support. Even the Central Bank of Russia, which has always opposed legalizing bitcoin or the like as payment, is now supporting the idea.
Another draft law, the bill “On Digital Currency,” which was proposed by the Ministry of Finance in February and has undergone multiple revisions since then, is supposed to regulate these matters. It is currently being discussed and delayed, but it will be up for review by Russian legislators during the autumn session of the Duma.
What do you think about Russian authorities imposing additional restrictions on digital asset operations? Comment below to share your hopes and fears.
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