Russia's Finance Ministry proposes labor reform for Bitcoin crimes

Russia’s Ministry of Finance has drafted a new bill that would provide for the deprivation of citizenship and criminal penalties for those involved in cryptocurrency activities, Russian news source Interfax reported.

According to a Russian government source who spoke to the news agency, under the new law, anyone who buys, sells or distributes cryptocurrencies will be fined 300,000 rubles ( $ 4,574 ) or subjected to up to 360 hours of labor reform.

If the violation is committed by an institution or group of people, the fine will be increased to 500,000 rubles ( $ 7,623 ).

The Ministry of Finance has called for a ban on cryptocurrencies in the country since August 2014 , when the federal executive body responsible for government policy and regulation drafted a law. Those measures were followed in October by a series of penalties and a nationwide crackdown on capital outflows.

Earlier this week, the Ministry of Finance again discussed the main issue of regulating the use of “ currency substitutes ” with the help of the definition that Bitcoin and other cryptocurrencies may lose value, Interfax reported.

Sources said that at the meeting, someone proposed giving the government the power to shut down websites related to digital currency activities without prior trial.

The discussion coincides with discussions in the Russian government about which institution has the highest authority over digital currency-related activities, as the country’s central bank , the Bank of Russia, is also studying the technology.

It is worth noting that groups like the Russian Ministry of Internal Affairs have previously expressed their willingness to follow the final decision of the Russian Central Bank.

The report indicates the next meeting will be on October 5 , when the Finance Ministry will decide how to proceed with the measure and whether to submit the draft law to the government.