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Crypto Mining in Russia: Lawmakers can introduce fines

Maya Mandzikasvili | Jun. 12, 2019
Crypto Mining in Russia: Lawmakers can introduce fines

June 12, 2019, | AtoZ Markets - Crypto mining in Russia can become illegal. As the local media reports, the State Duma may impose administrative responsibility for the mining of crypto, for example, Bitcoin, on the open blockchain.

State Duma: no go for crypto mining in Russia

The announcement about crypto mining in Russia was made by the head of the Russian State Duma Committee on the Financial Market Anatoly Aksakov, during one of his recent interviews.

Aksakov noted, that according to the new rules, the crypto-related activity, which is not covered by the Russian legislation will be considered illegitimate. He explained further, that mining, organizing production, circulation, creating exchange points for crypto will be prohibited.

The head of the Committee on the Financial Market added, that the person, not following the aforementioned rules, will have to pay a fine as part of administrative responsibility. He concluded, that “cryptocurrencies created on open blockchains - bitcoins, ethers, etc., are illegitimate tools."

Crypto mining in Russia stays illegal, but people are allowed to own cryptos, purchased from abroad

Although the Russian Duma decided to put mining behind the bars, as Anatoly Aksakov outlined, people can still own Bitcoins acquired under foreign law at foreign crypto exchanges, but not in Russia.

The Russian politician believes that accumulating a critical mass of crypto-related actions and operations will allow Bitcoin to become popular again. He outlined, that since the main problem of the blockchain is the speed of transactions, as soon as the speed increases, interest in Bitcoin can return again.

The head of the Russian State Duma Committee on the Financial Market explained that the adoption of the law "On digital financial assets" was "stuck" because of the FATF requirements for regulating existing cryptocurrencies, such as Bitcoin and Ethereum. However, the politician assured, that the law will be passed in June before the end of the spring session.

Acknowledgment about crypto in Russia stays low

It is worth to mention, the recent results of the research conducted by the Russian in Public Opinion Research Center (VCIOM). The Russian agency tried to check the country’s citizens awareness of crypto and their common attitude toward digital assets.

The survey showed, that the majority of Russians believe investing in bitcoin is not profitable. According to VCIOM more than half of the respondents (56%) had certain knowledge about Bitcoin but only  9% of those surveyed said they have detailed knowledge of Bitcoin. 18% of the respondents said they have heard the term “Bitcoin”.

Among those who have heard of Bitcoin, 37% were confident that anyone can get Bitcoins, while 12% believed that Bitcoins are banned in Russia.

Overall, as the research agency outlined, that the actual knowledge about Bitcoin among Russians is relatively poor.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.