Russia's Ministry of Finance to formally ban Bitcoin proposal

As we all know, the Russian Ministry of Finance has always had a tough attitude towards Bitcoin. Currently, it is formulating a proposal to formally ban Bitcoin. The proposal states that only the Central Bank of Russia has the right to issue the only currency in circulation in the country - the Russian ruble.

At the Russian Central Bank, the Russian Ministry of Finance is proposing amendments to Article 27 of the Russian Federation Law.  

Today, Moscow-based publication Izvestia published a report revealing the Ministry of Finance’s proposed amendments that would formally ban the production and circulation of the Russian cryptocurrency, Bitcoin. The Ministry of Finance cited Article 75 of the federal constitution, which explicitly states that the Russian ruble is the sole unit of currency in the federation.  

Article 75 clearly states:  

The ruble is the currency unit of the Russian Federation, the Central Bank of the Russian Federation is the sole issuing institution, and the introduction and issuance of other currencies in the Russian Federation is prohibited.  

For regulators and government officials, Bitcoin was once seen as a currency substitute, but recently some officials believe that Bitcoin is spreading too rapidly and will soon pose a threat to Russia's financial stability.  

Notably, the Russian Ministry of Finance quickly took steps to introduce criminal prosecutions, imposing jail terms and heavy fines on Bitcoin users who violate regulations, following an announcement by Russian payment operator Qiwi in September 2015. At the time, Qiwi revealed plans to launch a cryptocurrency called “bitrubles” with the intent to launch it in 2016.  

The Russian Finance Ministry is stepping up its crackdown on Bitcoin after regulators released a report this month that said it would impose penalties of up to seven years in prison on administrative staff who store cryptocurrencies at banks and financial services companies and use Bitcoin.