Cryptocurrencies face heavy regulation in Russia
Russian State Duma will review new laws concerning the cryptocurrencies. The proposed legislation puts strict limitations on the “digital financial assets” in the country.
The legislation makes the legal definition of crypto assets more detailed. It also severely limits the possibilities for trading. People and companies will only be able to issue tokens on the special platforms, which will be controlled by banks and depostories, regulated by the Central Bank. All the transactions will be controlled by the laws of the Russian Federation.
The organization of illegal trading will be punished with US$700-US$7000 fines for individuals and larger fines for the companies and officials. The organization of trading with criminal intent or for a large-scale profits will be punished with prison sentences. Buying the cryptocurrency directly, via cash or bank transfers, is punishable as well.
The legislation will hit crypto exchanges, ICOs and the crypto market in general. The president of the Russian Association crypto economy and blockchain Yuriy Pripachkin stated, that the laws will force crypto business to migrate from Russia to the neighbouring countries. “The proposition is, in fact, building the new iron curtain in the digital economy” - he stated.