Russia’s government warns that adoption of Bitcoin can cause grave problems. The main reason is that the state may lose the monopoly on the issue of money. Russia’s Ministry of Finance has even made amendments to the Criminal Code to punish those who use the virtual currency. At the same time, most countries are planning to recognize Bitcoin, the most popular cryptocurrency, as an official instrument of stock-exchange deals and a unit of account among banks. According to the amendments introduced by Russia’s Ministry of Finance, issuers of surrogate currencies, such as Bitcoin, will face up to four years in jail whereas executives of banks and financial service companies will spend seven years in prison. Besides, bank executives will lose their right to hold similar positions in the future.
The first versions of the bill proposed the harshest punishment of two years of correctional labor in case an offender acts as a member of an organized group.
The government believes that every user of cryptocurrencies is an accomplice to money laundering schemes. Thus, it is necessary to increase penalties for the use of the virtual currencies.
