The Russian parliament proposes a law that would penalize illegal crypto issues or exchange

With the adoption of a new law aiming to regulate the issue of cryptocurrencies, Russian authorities are advancing cryptocurrency regulation.

The measure introduced on June 22 and now under review by the country’s legislature stipulates that persons and organizations participating in the illicit issuing of cryptocurrencies would be liable to substantial penalties.

If the measure by Anatoly Aksakov becomes law, individuals would be punished up to 5,000 rubles and authorities up to 30,000 rubles ($550). There will be a punishment of between 700,000 and 1,000,000 rubles for legal companies.

In addition, businesses that breach the standards for crypto issuing will be fined 700,000 rubles ($13,000). The proposed legislation also imposes administrative accountability on those who violate digital rights via illicit activity.

Notably, Aksakov has supported additional crypto-related legislation with a unified regulatory structure. For instance, the prominent senator is behind other bills that attempt to prohibit the use of cryptocurrency as a payment method. However, the majority of entities accept the notion of the ruble being the exclusive legal money.

In the context of escalating sanctions in response to Russia’s invasion of Ukraine, many financial institutions in the nation are debating the best approach to crypto regulation.

During the discussion on crypto laws, it was hypothesized that the majority of Russians were adopting digital assets to circumvent economic sanctions. However, Finbold indicated that this was not the case.

In recent months, despite President Vladimir Putin’s demand for cooperation, there has been a dispute amongst governmental institutions about the proper crypto regulatory stance. Intriguingly, the Central Bank of Russia has proposed a blanket ban on crypto-related activity, whilst the Ministry of Finance has advocated for legislation governed by rigorous regulations.

The parliament is also anticipated to debate the ministry’s measure titled “On Digital Currency,” which is intended to govern crypto-related concerns.

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