Russian Finance Ministry Suggests Prison Time for Cryptocurrency Transactions

The Russian Ministry of Finance has proposed introducing criminal liability for the circulation of cryptocurrencies, with penalties of up to four years in prison. According to Deputy Finance Minister Alexey Moiseev, disagreements with the Central Bank of Russia regarding the regulation of exchanging cryptocurrencies for fiat currencies have been resolved, and the final decision on this matter will be made by the Bank of Russia.

Moiseev told journalists that criminal liability for the circulation of monetary surrogates could reach up to four years of imprisonment. This punishment is intended for groups of individuals who commit the offense in collusion. “The sentence will be around four years, but only for collective schemes that involve a large number of entities and significant volumes,” the Deputy Minister noted.

Moiseev also stated that the differences between the Central Bank and the Ministry of Finance regarding the regulation of exchanging cryptocurrencies for fiat currencies and other assets have been settled. He emphasized that the Bank of Russia will make the final decision on this issue. The circulation of cryptocurrencies is expected to be regulated through the proposed law “On Digital Assets.”

Additionally, Moiseev mentioned that the threshold for participation by unqualified investors in ICOs will not be specified in the law itself; instead, this parameter will be determined by the Central Bank of Russia. “The draft law will state ‘at the discretion of the Central Bank.’ The Bank will set this limit by its own decision,” he said.

Previously, it was assumed that unqualified investors would be able to participate in digital asset offerings with investments up to 50,000 rubles, while qualified investors could invest up to 150,000 rubles.