Russian Ministry of Finance: Bitcoin transactions can be punished by up to 4 years in prison

     According to Russian media reports, the Russian Ministry of Finance recently proposed that users participating in Bitcoin transactions will face up to four years in prison. This proposal has not yet been included in the law or enforced.

According to previous amendments to the Russian Criminal Code, individuals who issue, buy and sell virtual currencies face fines of up to 300,000 rubles or 360 hours of labor reform, and the organized use of virtual currencies faces fines of up to 500,000 rubles or two years of labor reform.

Russian media reported that the new proposal of the Russian Ministry of Finance has been supported by the Ministry of Economic Development of the Russian Federation. The Ministry of Economic Development of the Russian Federation is a federal executive body that performs the functions of formulating national policies and normative laws in the field of social and economic development and the development of commercial activities.

More and more banks and other financial institutions in developed countries are trying to use Bitcoin's blockchain technology or other methods to regulate cryptocurrencies, but Russia insists that Bitcoin has a high risk of money laundering and that using Bitcoin is an "illegal transaction."

In 2014, the Russian Prosecutor General issued a statement explicitly prohibiting the use of Bitcoin in Russia. In June 2015, the Governor of the Russian Central Bank announced that it would continue to closely monitor the Bitcoin market and regulate it when necessary. In September 2015, the media reported that the Russian Ministry of Finance was ready to amend the provisions of the federal law "Information, Information Technology and Information Protection" to restrict access to websites that allow the issuance and circulation of virtual currencies.