Based on the statement by the Russian Ministry of Finance, Bitcoin is a major threat to the country’s national security and economy. This opinion is shared by various Russian financial experts, and a legislative proposal has been created to enforce penalty charges of up to 500,000 rubles. Furthermore, officials could turn this punishment into a two-year corrective labor sentence as well.
It is not the first time Russia and Bitcoin clash heads throughout the years, as the government is very strict when it comes to financial matters. Not too long ago, several Russian Bitcoin websites were made inaccessible by the country’s watchdog service. That decision was overturned in court later on, although it was only a sign of things to come.
Assuming Bitcoin and other digital currencies become subject to criminal punishment, things are not looking all that great in Russia. At the same time, this Ministry of Finance proposal can create an adverse effect and hurt the Russian economy even more. While there is nothing wrong with trying to regulate Bitcoin on paper, resorting to jail sentences and hefty fines should be a last resort.
It remains to be seen whether or not the Ministry of Finance proposal will become a part of Russian law in the future.
Bitcoin provides a backup plan for both residents and investors, as the digital currency is a way to transfer value around the world and between different fiat currencies.
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