The bill on liability for the use of cryptocurrencies in Russia in payments provides for fines from 100 thousand rubles for individuals and from 700 thousand rubles for legal entities. This information was shared by the director of the legal department of the Bank of Russia, Andrei Medvedev, at the XIII St. Petersburg International Law Forum.
The document has been submitted to the State Duma and suggests amending the Code of Administrative Offenses of the Russian Federation by adding Article 15.49, which outlines four compositions. Specifically, the first part of the article introduces liability for using digital currency as a payment tool.
Medvedev highlighted that the proposed measures entail harsh consequences compared to the general background of the Code of Administrative Offenses. The penalties range from 100 to 200 thousand rubles for individuals and from 700 thousand to 1 million rubles for legal entities. Additionally, the confiscation of the cryptocurrency involved in an illegal transaction is also included as a form of punishment.
He stressed that the Bank of Russia maintains a firm stance against using digital currencies as a means of payment, as stated in Law No. 259-ФЗ “On Digital Financial Assets.” Medvedev described this position as “immutable truth” that the regulator is determined to uphold. He expressed optimism about the new provisions of the Code of Administrative Offenses, believing that they will reinforce the prohibitive norm established in Law 259.
On the other hand, a different approach may be adopted regarding the use of digital currencies in foreign economic activities. Medvedev suggested that digital currencies could be utilized in such cases, under an experimental legal regime (EPR) to promptly address and manage emerging risks.
Previously, the head of the Bank of Russia, Elvira Nabiullina, voiced support for stricter penalties concerning cryptocurrency transactions domestically, while permitting their use in international trade within the EPR framework. The Central Bank is also open to allowing cryptocurrency investments in Russia, but limited to a select group of investors. The proposals released on March 12 specified that only highly qualified investors, with substantial securities investments or annual incomes, would qualify for such opportunities.