08:58, 16 September 2020 Page views 1260 views

Russia to prohibit cryptocurrency turnover?

(no votes)

obmen-kriptovalyuty.jpgMiners will be unable to receive rewards in bitcoins and ethers if amendments proposed by the Ministry of Finance to the federal law on digital financial assets (DFA) are adopted.

In a circular note sent to departments and agencies, the Ministry of Finance proposes payments for mining in cryptocurrency to be prohibited. The mining activities remain allowed, but they lose financial value, because such payments used to be in bitcoins and ethers.

The wording does not bode well for miners, since it remains unclear how they can get their remuneration, said Moscow Digital School CEO Dmitry Zakharov. Perhaps experts will try to invent some noteworthy legal schemes, but all of them will face significant legal exposure as regards administrative and criminal liability, he warned.

The amendments also contain a direct prohibition for individuals and sole entrepreneurs to perform any transactions with virtual money, except for three cases, including inheritance, receipt of assets through bankruptcy and enforcement proceedings.

Illegal circulation of digital money, as well as transactions and payments for goods and services with digital money in Russia are supposed to entail administrative and criminal liability such as a fine of up to 100 thousand rubles and seven years’ imprisonment for individuals, and a fine of up to 1 million rubles for legal entities.