Russia's Ministry of Finance is determined to crack down on Bitcoin and proposes to make related activities illegal

Russia’s Ministry of Finance has drafted a new bill that aims to outlaw activities involving digital currencies and apply criminal penalties, Russian news source Interfax reported.

Citing sources within the Russian government, Interfax reported that under the new bill, selling and distributing cryptocurrencies will be punishable by a fine of 300,000 rubles ($4,574) or up to 360 hours of labor correction.

If the violation is committed by an institution or group, the fine increases to 500,000 rubles ($7,623).

The federal executive agency, which is responsible for policy and regulation in the Russian government, has been seeking to ban cryptocurrencies since it introduced a draft bill in August 2014. It is reported that this is a new measure following a series of fines proposed by the Russian Ministry of Finance in October last year.

Interfax reported that earlier this week the Treasury Department once again began exploring regulating the use of “currency substitutes,” a definition that includes Bitcoin and other cryptocurrencies.

The sources said that at the meeting, it was proposed that the government have the power to block websites involved in digital currency activities without a trial.

The meeting also touched on Russian government agencies that hold the ultimate authority over digital currency activities, such as the Russian Central Bank, which is also currently researching digital currency technology.

It is worth noting that the Russian Ministry of Internal Affairs had previously expressed its willingness to postpone the final decision for the Russian Central Bank.

The report also mentioned that the Ministry of Finance will hold another meeting on October 5 to decide how to proceed with the measures and whether to submit the draft bill to the government.

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