While the Russian government is trying to impose regulatory laws on virtual currencies, its finance minister has stated that buying bitcoin and cryptocurrencies will be lawful, but he proposed to make their mining illegal.
“The penalties will be different, mostly administrative, but if someone created the cryptocurrency for the purpose of settlements, then there will be a criminal punishment,”– said Deputy Finance Minister Aleksey Moiseev.
Penalties of legal nature will also be applied to those that create business pyramid models or try to evade taxes by distributing cryptocurrency.
The minister insisted on the matter that buying bitcoins and other virtual currencies will be permitted without any legal penalties.
Bitcoin mining and selling is not currently regulated by Russia, but a mandate from Russian president Vladimir Putin has started the process of creating a regulatory structure for initial coin offerings, cryptocurrency mining as well as defining all that is related to virtual money in Russia. In October, Putin and important Russian financial regulators signed off official regulatory laws which concern the mining and supply of cryptocurrencies like bitcoin.
“We agreed that the state should control the process of cryptocurrency emission and its circulation. The state should take control over it,„ said Russian finance minister Anton Siluanov. “I won’t speak about specific parameters now but in general we agreed that the state should take a lead in this process and to regulate it on the legislative level.”
Regulators have a plan of imposing limits on cryptocurrency purchases. The draft of the bill had set a maximum limit of 100,000 rubles per individual. Another limit of 600,000 rubles is also being considered.
Siluanov has confirmed that the bill which will pass the regulatory cryptocurrency laws will be completed by the end of the year 2018.