Russia’s Finance Ministry Proposes Ban on Mining for Cryptocurrency / Ramil Sitdikov

With new regulations scheduled to be revealed next year, it seems that virtual currency mining may be banned in Russia.

Sources from Russia have reported that a ban on the approaching legislation of mining for cryptocurrency has been proposed by the Finance Ministry. The upcoming legislation would regulate digital assets as well as other features of the blockchain. In addition, President Vladimir Putin issued a press release on the 21st of October, requesting that such laws needs to be passed by the start of July 2018.

According to the state-backed news source TASS, Deputy Finance Minister Alexei Moiseey described the possible ban, saying that the penalties will be administrative for the most part, but that if someone made cryptocurrency that is intended for settlements, then “there will be a criminal punishment.” The deputy also added that people who create financial pyramids or issue cryptocurrencies to get out of paying taxes would also be subject to criminal penalties. However, under the proposed updates to the nation’s regulatory code, purchasing digital assets like Bitcoin would remain legal.

Moiseey also revealed that this forthcoming legislation will have a number of new terms and concepts without criterion in Russian law, meaning that progress in drafting it may take some time.

Putin also suggested on the 10th of October that blockchain technology might bring new solutions to the banking sphere of the Federating. However, he also gave caution, saying that the “use of cryptocurrencies also carries serious risks.”