Penalties for using cryptocurrency as a means of payment

The Ministry of Finance proposed introducing articles into the Code of Administrative Offenses establishing liability for violations usingdigital financial assets.

The Ministry of Finance of the Russian Federation (Ministry of Finance) has determinedthe size of the fine for using cryptocurrencies as a means of payment. According to the published proposal of the ministry, the use of cryptocurrency as a means of payment on the territory of the Russian Federation is subject to administrative fines:

• Individuals in the amountfrom 20 thousand rubles to 200 thousand rubleswith confiscation of the subject of the administrative offense.
• For officials the fine will befrom 50 thousand rubles to 400 thousand rubleswith similar confiscation.
• The most severe penalties are prescribed for legal entities -from 100 thousand rubles to 1 million rubles.

While the proposed amendments are at the stage of project placement and still need to be considered by the Russian government.

Tough position of the Ministry of Finance

The Ministry of Finance of the Russian Federation has long been waging a fierce struggle onlegislative level for introducing the most severe regulation of the cryptocurrency market. For example, at the end of September, the ministry proposed to punish under criminal law for failure to declare a cryptocurrency wallet with turnoverover 1 million rubles per year... Whether the Ministry of Finance has abandoned the idea of ​​criminal prosecution by prescribing administrative fines is still unclear.

In mid-October, the Ministry of Finance also expressedconcerns regarding the use of the digital ruble in illegal activities. The department warns that the national digital currency must be strictly backed and transactions strictly monitored to prevent a deterioration in the economy and “increasing social tensions.”

According to the Russian Association of Cryptoeconomics,artificial intelligence and blockchain (RACIB), the amendments previously proposed by the Ministry of Finance of the Russian Federation to the law “On Digital Financial Assets” will roll back the country’s technological development to the level of Afghanistan.

“We will isolate the country from the rest of the world and makeour participation in a large number of international projects is impossible. The adoption of the amendments in the current edition will put Russia at the level of Algeria, Bangladesh, Afghanistan "- said in early September the executive director of RACIB Alexander Brazhnikov.

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