Russian Bitcoin Ban Plans to Fine Digital Currency Users

October 4, 2014 05:28 UTC

The Russian Bitcoin ban is starting to take form as Russia’s Ministry of Finance has revealed the full draft of their proposed legislation. When Russian media first reported Russia’s intentions to ban Bitcoin by 2015, the world wondered how the ban would be implemented. Russia is going to have inherent trouble in tracking Bitcoin transactions.

The Russian Federation is planning to impose fines on anyone caught using or spreading information about digital currencies. According to the document, individuals that are found to be creating, mining, or issuing Bitcoin or other digital currencies will be penalized 30,000 to 50,000 rubles. The fine gets steeper for government officials, whom are supposedly held to a higher standard despite rampant reports of corruption in Russian government. Businesses, or legal entities, would be liable for up to 1 million rubles in fines if caught. In an unanticipated development, Russia will also be fining those that simply disseminate information that promotes digital currencies. Russia’s Bitcoin ban is the most heinous that the community has seen thus far.

Read also: Russia Plans Bitcoin Ban by 2015

Bitcoin Bans Around the World

When Russia’s current Bitcoin ban was revealed to the world last month, Deputy Finance Minister Aleksey Moiseev claimed that he was following Europe’s lead. However, no other country in Europe has taken such drastic moves against Bitcoin. In fact, the central bank of England seems very unlikely to ever issue a Bitcoin ban, given the depth of understanding revealed in a recent report. It is possible that Moiseev was referring to the EU Banking Authority’s digital currency warnings on Bitcoin; however, dozens of countries have warned about Bitcoin. The most prominent Bitcoin ban from another country is Ecuador’s recent announcement that they would be banning Bitcoin in favor of their own national cryptocurrency. Russian Bitcoiners are still reacting to the proposed legislation and despite the near-certain threat of large fines, hundreds of full Bitcoin nodes still stand within the Russian Federation.

Images from Shutterstock.

Last modified: October 4, 2014 06:25 UTC


Caleb is a graduate of the University of Virginia where he studied Economics, East Asian Studies, and Mathematics. He is currently pursuing his MSc in Digital Currency at the University of Nicosia.