According to a source in the Russian government, individuals who issue money surrogates face as many as four years in prison. Executives with financial firms that release their own money surrogates could be imprisoned for as many as seven years and be restricted from holding similar positions in the future.
Fines for issuing a money surrogate range from 500,000 rubles to 1 million rubles, or roughly USD 7,000 to USD 14,000, respectively. Executives from financial firms could pay as much as 2.5 million rubles, or about USD 35,000.
The report comes as Russia moves closer to formally weighing legislation that, if passed, would govern activities involving money surrogates, a classification of non-government issued currencies that includes Bitcoin. Efforts to formalize restrictions on money surrogates began in 2014.
At least one private company, payments firm QIWI, is pushing ahead with its plans for a digital currency called BitRuble. The company recently said that it is developing the project and working with regulators, including Russia’s central bank, which in the past has indicated its interest in the technology that underlies Bitcoin.
However, QIWI’s plans for BitRuble have drawn fire from some members of the Russian government, and indications suggest that resistance to the project remains.
