Russia bans Bitcoins and other cryptocurrencies

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The Russian parliament, Duma proposes fines of up to 2 million rubles ($28,000) and up to 7 years in prison for owning and dealing in Bitcoins and other cryptocurrencies

The deputies of the Russian parliament, Duma have proposed a new law for the regulation of Cryptocurrencies like Bitcoin, Ethereum, etc. Anyone owning or trading more than 3.5 bitcoins or equivalent other cryptocurrencies can be jailed according to the new law.

Readers should know that Russian Duma doesn’t function like the Senate or Loksabha of India and laws proposed are always passed without opposition. According to the proposed law, dealing and owning cryptocurrencies in Russia will become illegal accept in small quantities.

Many Russian experts believe that such measures can lead to the destruction of the blockchain industry in Russia.

People who currently own cryptocurrency will be forced to get rid of it before the law comes into force, or risk “going underground”, and this is a loss or risk.

Dmitry Kirillov, a senior tax lawyer at Bryan Cave Leighton Paisner.

According to the new law, mining or exchanging 3.5 bitcoins will lead to criminal prosecution. Russia plans to impose harsher penalties for dealing in Bitcoins and other cryptocurrencies. The new law proposes penalties for any use of digital assets, from the organization of a crypto exchange and mining farm, attempting to pay with cryptocurrency on the Internet. Fines range from 500 thousand rubles ($7,000) for individuals and up to 2 million rubles ($28,000) for legal entities.

Founder of the stable cryptocurrency platform Stasis.net Gregory Klumov called the new amendments “putting nails in the coffin of financial innovation and technological progress.”

It should be noted that many Russians work in the field of blockchain technology. In fact, Russians are at the forefront of developing software and hardware for storing tokens, and cryptocurrencies. Many young Russians specialize in Blockchain technology and this law could mean the end of the road for them.

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